Work from Home: Which way to go?
Work from home might have seemed like just a really cool idea a year ago. But the Covid-19 pandemic has changed all that.There are certainly advantages to working from home. The commute is shorter--so you might save a few dollars on transportation, transit and coffee.But there can be costs as well, The federal government has recognized the reality of 2020 by launching a simplified system to claim home office expenses.In previous years, the process for claiming home office expenses depended on you getting a form from your employer. After that a series of detailed calculations involving how much of your home you used as an offce, and a requirement you keep receipts.The simplified system allows you to claim 2 dollars per day for working at home. That's for a maximum of 400 dollars.Of course, there are some rules.The Canada Revenue Agency lays out those rules quite clearly. Just so you know: It doesn't matter if your employer required you to work from home, or if you made the choice yourself.CRA has also created a calculator to help you determine the amount for which you might be eligible.The simplified method will quite likely work well for those who had to work from home in the past year. There is however, the chance you just might be the square peg trying to fit into the round hole created by the CRA. In that case, you may want to explore the detailed method. Here's a comparison of the two optionsCloudTax software will help guide you through the deduction process. We also have live help available to ensure your return is completed accurately. Or, you can upgrade to CloudTax Pro where a tax expert will complete your return. You don't even have to leave your home.If you would like to read more about the work from home deduction, and the options available to you, we recommend this article by Rebecca Hett-30-