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What the CRA Said

Deducting Expenses When Working From Home

The COVID-19 pandemic has resulted in many Canadian employees working from home to help minimize the spread of the virus, raising questions about how salaried and commissioned employees affected by the new realities can claim work-space-in-the-home and supplies expenses, on their 2020 Personal Tax Return.

One of the requirements is that Form T2200, Declaration of Conditions of Employment, must be completed and signed by an employer, to enable their employee to claim certain employment related expenses (including work-space-in-the-home expenses and supplies).

A short form of the T2200 has been revised and is available.

Wage Subsidy Registry

As part of the government’s ongoing commitment to transparency, the Canada Revenue Agency (CRA) launched the Canada Emergency Wage Subsidy Registry. This web page allows Canadians to identify which employers are using the wage subsidy to support jobs.

The wage subsidy can only be claimed for employee remuneration by eligible organizations that have experienced a significant drop in revenue. The registry allows the public to identify businesses that have experienced a significant drop in revenues and collected the wage subsidy.

Subsidies for Free Tax Clinics

The Canada Revenue Agency recognizes the value of free tax clinics that help Canadians do their taxes so they can get the benefit and credits they are entitled to.

To support these organizations, the CRA will invest more than $10 million over three years in a new grant program to help organizations offset some of their costs.

Starting in February 2021, organizations that plan to apply for the grant need to track their tax clinic expenses and the number of tax returns that their volunteers complete. The CRA will start accepting applications in May 2021. This pilot project will run for three years. To learn more about the CVITP grant program, visit canada.ca/free-tax-clinics-grant.

Taxable COVID Benefits

If you have received the Canada Emergency Response Benefit (CERB), the Canada Emergency Student Benefit (CESB), the Canada Recovery Benefit (CRB), the Canada Recovery Sickness Benefit (CRSB), and/or the Canada Recovery Caregiving Benefit (CRCB), expect a tax slip as these benefits are taxable.

Canadians will begin receiving T4A slips from the CRA for these benefits to support their tax filing. The T4A is virtually identical to the T4 slips Canadians are used to receiving from their employers, but rather than employment income, they provide the amounts of COVID-19 benefits received from the CRA in 2020.

This information is for discussion purposes only and should not be considered professional advice. There is no guarantee or warrant of information on this site and it should be noted that rules and laws change regularly. You should consult a professional before considering implementing or taking any action based on information on this site. Call our team for a consultation before taking any action. © 2021 Shajani LLP