If the Covid-19 pandemic forced you to work from home for more than 50 percent of the time over four consecutive weeks you’ll be eligible for a deduction on your 2020 tax return.
Canada Revenue Agency (CRA) has simplified the rules to make millions of Canadians eligible for the tax deduction – $2 for each day worked from home during the four-week period to a maximum of $400. Those who qualify will not be able to claim expenses related to using their automobile for work .
Others, with larger claims for home office expenses, can still use the detailed method to claim the deduction. CRA is making that easier with two new simplified forms and a calculator. Claimants will no longer have to get their employers to complete a complicated form attesting to their work-at-home status.
In addition, CRA is recognizing home internet access fees as a deduction.
In April, as many as 3.3 million Canadians were working from home due to Covid-19. By October the number had fallen to 2.4 million.