Eligible employees who worked from home in 2023 will need to utilize the Detailed Method to claim home office expenses. The temporary flat rate method, which was applicable for a limited period, does not extend to the 2023 tax year.
As an employee, you may qualify to claim specific home office expenses. These expenses include work-space-in-the-home expenses, office supplies, and certain phone expenses that are directly related to your employment duties.
It’s important to note that this deduction is claimed on your personal income tax return. Deductions serve to reduce the amount of income subject to taxation, thereby lowering your overall income tax liability.
Salaried employees are eligible to claim expenses such as electricity, heat, water, some utilities, monthly Internet access, or a portion of their rent if applicable to their work-from-home arrangement.
Commission-based employees have additional eligible expenses they can claim, including home insurance, property taxes, and the lease costs of a cell phone, computer, and other necessary work-related equipment.
Understanding and correctly claiming these expenses can result in significant tax savings for eligible employees. It’s advisable to consult with a tax professional or utilize tax software to ensure accurate reporting and maximize potential deductions.
Review the CRA website for more. https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-22900-other-employment-expenses/work-space-home-expenses.html
