Did you know that...
- You must make your RRSP contribution no later than the first 60 days of the current year for it to be deductible on the previous year's income tax return;
- It is mandatory to file your return, both federally and provincially;
- You must keep the supporting documents related to your taxes for six years.
Deductible employment expenses due to telecommuting during the COVID-19 pandemic
Due to the health measures put in place to combat the spread of COVID-19, a majority of companies have asked their employees to work from home. If you are one of these workers and you have mainly worked from home for at least four weeks in a row in 2022, be aware that some of your expenses related to this situation could be deducted from your tax return. To do this, two methods are available: temporary fixed rate method and the detailed method .
The temporary fixed rate method in brief:
- Allows the deduction of an amount of $2 for each day worked at home up to a maximum of $500;
- No other expenses related to telework can be declared;
- No expense receipt is required.
More specifically, an individual will be able to claim, in his 2021 and 2022 income tax returns, a deduction of $2 for each day he worked at home during these years. As the pandemic has led employers and employees to favor telework for all of 2021, the number of eligible days is increasing from 200 to 250 days per year.
The detailed method in brief:
- The employee must have received the form T2200S or T2200 signed by his employer;
- Deducts the cost of office supplies and a reasonable portion of home office expenses;
- Eligible expenses include, among other things, expenses related to office supplies used in the course of employment (paper, ink, etc.) and a reasonable proportion of utility costs, home Internet access costs, rent payments for tenants (but not mortgage payments for landlords) and maintenance or repair costs;
- It is not possible to claim a deduction for supplies reimbursed by the employer.
If you choose the itemized method, be aware that you will need to determine the size and use of the space you used for the work in order to calculate the reasonable proportion of the deduction amount. The Canada Revenue Agency presents on its website how to do this calculation .
Note that workers for whom teleworking was already part of their employment contract before the pandemic cannot take advantage of these measures. They will have to complete the usual forms related to home office expenses.
What information do you need to file your tax return? Here are some examples:
- Employment income (T4 and Relevé 1)
- Notice of provincial and federal assessment for the previous year
- RRSP contributions
- RRSP or RRIF withdrawals (T4RSP and T4RIF)
- Medical fees (dentist, medication, glasses, etc.)
- Charitable donation receipts
- Investment income (T5/Relevé 3, T3/Relevé 16, T5008/Relevé 18)
- Political contributions (federal or provincial party)
- Union and professional dues
- Last year's federal and provincial notice of assessment
- Employment insurance (T4E)
- Pension and annuity income (T4A/Relevé 2)
- Interest paid on eligible student loans
- Deductible financial expenses
- And more depending on your situation
Are you an owner or a tenant?
You have children?
For a detailed list of refundable and non-refundable tax credits, visit the Canada Revenue Agency website And the one of Revenue Quebec .