Working from home due to COVID? You may be entitled to some tax benefits…

Working from home due to COVID? You may be entitled to some tax benefits…
Share on facebook
Share on twitter
Share on linkedin

For those who are fortunate enough to continue working, you’re likely doing so from home. Other than the benefits of gaining commuting time back to spend with the family and the savings in commuting costs (i.e. fuel, transit, parking, etc.), are you missing out on any other benefits?

According to the Canada Revenue Agency (“CRA”), you may be entitled to deduct certain expenses from your income while working from home.

In order to be eligible, your employer must complete a form (T2200) to confirm that you are personally paying expenses to perform the duties of your job from home. Now, start keeping track of expenses that relate to your work space. The most notable will be your utility bills (i.e. electricity, heating, etc.). However, you can also deduct property tax, maintenance (to the work space area) home insurance premiums and internet/communications costs. This is not an exhaustive list. I suggest referring to the CRA web-site for more details.

Remember, you can only deduct a percentage of these expenses, and it is prorated to the time that you were working from home. The percentage is based on the size of your work space relative to the size of your home.

For example, if your office/work space at home is 200 square feet and your home (finished area) is 2,000 square feet, then you can deduct 10% of the eligible expenses. As well, if you started working from home on April 1st, then you can only include 75% of this amount (i.e. April – December expenses). You can include 100% of this amount if you were working from home for the entire calendar year.

We know that the COVID will end in due time, so while we are in living in this pandemic, we ought to use the benefits that are available to us.

Related articles

Are You Working with a Stagnant Advisor? Podcasts

Are You Working with a Stagnant Advisor?

Across all industries, it’s important to work with the best. Now that doesn’t always equate to the most expensive, what it does require however is an individual who is committed to staying current and educated. Far too often specialists can become compla…

Read More →
Fee Rates: Bad Marks for Canadian Fund Fees Podcasts

Fee Rates: Bad Marks for Canadian Fund Fees

Morningstar has given Canadian fee rates an official thumbs down. Find out why we are getting such poor marks. What goes into making up a fee rate? Why is unbundling your fees advantageous and how do we stack up? Listen today as Senior Financial Advisors…

Read More →

The 5-Hour Rule Used by Bill Gates, Jack Ma and Elon Musk “You just walked in the door from an exhausting day at work. You’re hungry and spent, just wanting to catch your breath for a …

Read More →

Financial Planning Advice from Canada's Top Financial Advisors

Sign Up To Receive Email Updates On The Financial Industry And Complimentary Workshops.

By providing your e-mail address you provide The McClelland Financial Group of Assante Capital Management Ltd. with your express consent to send you electronic communications. If you choose to discontinue receiving e-mails, you may withdraw consent by contacting [email protected].


Get actionable financial insights from the TMFG team.

Copyright Assante Wealth Management. © 2022

Disclaimer | Assante advisory services are offered through Assante Capital Management Ltd. Assante Capital Management Ltd. is a Member of the Canadian Investor Protection Fund and Investment Industry Regulatory Organization of Canada. The services described may not be applicable or available with respect to all clients. Services and products may be provided by an Assante advisor or through affiliated or non-affiliated third parties. Some services and products may not be available through all Assante advisors. Services may change without notice. Insurance products and services are provided through Assante Estate and Insurance Services Inc.

We have a team of advisors each specializing in varying portfolio sizes. Please let us know the approx. amount of your investable assets to help us to direct you to the advisor that is best suited to you.