Can You Claim Work from Home Expenses on Your Taxes in 2022?
June 29, 2022 | Written by: Hassan Iqbal
In recent years, there has been a huge surge in the number of people working from home. The rise of technology has made it easier for people to telecommute and still be productive. As a result, more and more people are asking the question: can you claim work from home expenses on your taxes? The answer is yes, but there are some restrictions that you need to be aware of. This blog post will discuss the rules around claiming work from home expenses on your tax return. We will also provide some tips on how to maximize your tax deduction.
So before we start, let’s settle down some general rules that will give you an easy way to understand this process.
If you have been asked to work from home, you can easily claim the work-from-home expense on your tax return for the year.
If you haven’t been asked but chose to work from home, then you are not eligible for this. It has always been this way.
How much tax relief can I get on work from home expenses in Canada?
The answer to this question depends on a few factors, including your country and the type of expenses you incurred.
In Canada, you may be able to claim a deduction for certain expenses related to working from homes, such as the cost of office supplies and equipment. The deduction is available whether you are an employee or self-employed.
To claim the deduction, you must keep receipts for your expenses and fill out a T2200 form. The T2200 form is available from the Canada Revenue Agency (CRA).
If you are an employee, your employer must also sign the form.
You can claim work-related expenses on your tax return even if you do not have a T2200 form. However, you will need receipts for all your expenses to claim the deduction.
How can I apply for work from home expense tax relief in Canada?
The work from home tax deduction is a new measure introduced in the 2020 taxation year to help Canadians with expenses incurred while working from home. This deduction can be claimed for a portion of eligible expenses, such as internet and phone costs, office supplies, and home insurance.
To claim the work from a home tax deduction, you will need to complete Form T2200, which is available on the Canada Revenue Agency website, or you can ask any professional firm and get in touch with their advisory services to get a better grip on this process.
Am I eligible for work from home expense tax relief?
To qualify for the deduction, you should have worked from home for at least four days in a row, or more than 50% of the time during the tax year. The form T777s serves your purpose, and you have to fill this form and submit it to your employer. The employer will then give you a letter you need to attach to your tax return.
Restrictions on claiming work from home expenses on your tax return will become stricter in 2022. Currently, you can claim a deduction for expenses related to working from home if your employer requires you to do so and you incur additional costs. However, from next year, deductions will only be available where your employer has specifically agreed in writing that you can work from home and only covers the period.
So, now you understand how you can claim work from home expenses on Your Taxes in 2022? If you have any further queries feel free to contact us. We would be happy to assist you.
Sohail Afzal, CPA, CMA, MBA
Sohail Afzal, (CPA, CMA, MBA) is the founder & CEO of GTA Accounting Professional Corporation. He is a highly experienced Chartered Professional Accountant and businessman himself and understands the challenges that many businesses face when it comes to cash flow management. As an experienced business consultant & tax advisor, he is helping companies grow by providing the technical, financial, and contractual information necessary for strategic decision-making.