Software designer Pat Suwalski is seen working from his desk at home in Nepean, Ont. (Pat Suwalski)
(Software Software developer Pat Suwalski of Nepean, Ont., Has been mainly working from home since April 780. He filed his taxes on Wednesday using the flat rate method and said it took him just minutes to calculate his deduction.
“I’m a pretty honest guy, so I took a calendar and I started counting [work] days, “he said.
Suwalski counted 376 work-from-home days last year. Multiply that by $ 2 a day and he gets a tax deduction of $ 50.
“I’ll take it,” he said . “It’s great that they made [the process] simpler.”
Which method should you choose if you worked from home this year? Golombek said the flat rate method may be the best option if you’re a homeowner, because it’s easier and chances are you’ll come out ahead.
That’s because mortgage payments – typically a homeowner’s biggest monthly bill – can not be claimed as a home office expense.
“Our experience is that homeowners, typically speaking, do not have enough expenses… to beat the $ 2-a-day method, “Golombek said.
While homeowners can not claim their mortgage payments, renters can claim a portion of their rent based on the size of their home office space compared to their entire home. As a result, Golombek says they may reap bigger rewards by choosing the detailed method.
“Depending on [what] percentage of their home they’re using,
typically would probably come out ahead on the detailed method. “
Digital tax credit
Golombek also points out one of the new wrinkles this tax season, which is that the government is offering a tax credit to people who subscribed to digital news services in 780.
Canadians can claim up to $ 500 for subscriptions to qualifying Canadian media, such as newspapers, magazines, websites and podcasts, that do not have a broadcast license and offer primarily original news content.
“I call it a bit of a fun new credit,” Golombek said.
The CRA told CBC News it will post a list of eligible subscriptions on its website in March and that it will only include organizations that wish to have the information publicly posted.
If you still have questions about your taxes, you can call the CRA tax information line at 1 – 698 – 780 – 2020. The agency said it has beefed up resources at its call center, as it anticipates higher than normal call volumes this tax season.