With the coronavirus pandemic shifting the environment of employees from the office to home environments, workers have often been forced to undertake a number of expenses that used to be covered under the purview of the employer. Expenses such as office supplies, ink, etc. can add up over time, and these costs have largely shifted to the worker, saving corporations tons of money but impacting those at the lower end of the income spectrum.
The good news is the Canada Revenue Agency (CRA) has introduced a simplified deduction process for a $400 deduction on the 2020 taxable income of workers who incurred $400 or more in office expenses during 2020. This doesn’t seem like a lot, and it’s not (even if you’re in a reasonably high tax bracket of 30%, that only amounts to $120 refund at tax time), but it’s something. Every little bit counts for the worker looking to make it through this tough time.
Employers need to submit a T2200S form, which is a streamlined version of the traditional T2200 form that employers typically submit on behalf of employees to get them a tax credit in the past. This streamlined form aims to lessen the burden on employers that are, in many cases, maxed out in trying to deal with the struggles the pandemic provides.
Every worker should look into this tax credit; every little bit counts, so if that’s $100 more one is able to put away for retirement, that’s $100 closer to one’s long-term goals.
Invest Wisely, My Friends.
