Fw: Canada Revenue Agency (CRA) Communication on 2020 Home Office Deduction
Gaps
gaps at triumf.ca
Mon Jan 25 16:23:56 PST 2021
Hi all,
Please see the following message from HR regarding work from home tax exemptions.
Cheers,
Your GAPS
--------------------------
Begin forwarded message:
From: Ian Doyle <idoyle at triumf.ca<mailto:idoyle at triumf.ca>>
Subject: Canada Revenue Agency (CRA) Communication on 2020 Home Office Deduction
Date: January 25, 2021 at 11:15:27 AM PST
To: Human Resources Announcements <hr_staff_announcements at triumf.ca<mailto:hr_staff_announcements at triumf.ca>>
Hello Everyone,
Over the course of the past number of months we’ve received questions from members of the community regarding tax exemptions relative to work from home for the 2020 tax year. We’re happy to report that CRA has announced a new initiative whereby employees can claim home office work related expenses on their personal income tax return. The details of the program are noted below.
Canada Revenue Agency (CRA) Communication on 2020 Home Office Deduction
As a result of COVID-19, many TRIUMF staff have been working at home and using their kitchens, bedrooms and living rooms as their workspace. In response, the CRA has introduced a new temporary flat rate method to simplify claiming the deduction for home office expenses for the 2020 tax year.
As an employee, you may be able to claim a deduction for home office expenses (work-space-in-the-home expenses, office supplies, and certain phone expenses). This deduction is claimed on your personal income tax return. Deductions reduce the amount of income you pay tax on, so they reduce your overall income tax liability.
Eligibility
Employees are eligible to claim a deduction for home office expenses for the period worked from home, if they meet all criteria:
* Worked from home in 2020 due to the COVID-19 pandemic
* Worked more than 50% of the time from home for a period of at least four consecutive weeks in 2020
* Expenses are used directly in their work during the period
CRA Flat rate method
The new temporary flat rate method simplifies the claim for home office expenses to a maximum of $400 (200 working days) per individual. This method can only be used for the 2020 tax year. Employees cannot claim any other employment expenses if they are using the flat rate method.
For more information, please visit the Canada Revenue Agency<https://can01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.canada.ca%2Fen%2Frevenue-agency%2Fnews%2F2020%2F12%2Fsimplifying-the-process-for-claiming-a-deduction-for-home-office-expenses-for-employees-working-from-home-due-to-covid-19.html%3Ffbclid%3DIwAR3COlJzVkaOYJf__fD0zM8yaPEnpsp6xT4vZBsQtcLA6nDagUGcA17MY2Y&data=04%7C01%7Cgaps%40triumf.ca%7Cb763c2583c1b4a4b1c7a08d8c1905a4a%7Cc20535109cb34679a2d38f442e03b587%7C1%7C0%7C637472173024224281%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=wo049umgda%2BlExsQ4IWj7aFGWEF3whjjrlC7ZQxlouM%3D&reserved=0> website or contact payroll at triumf.ca<mailto:payroll at triumf.ca>.
Ian Doyle MBA, CPHR, SHRM-SCP
Director, Human Resources
t 604.222.7314 | c 778.903.0274 | e idoyle at triumf.ca<mailto:idoyle at triumf.ca%E2%80%8B>
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