Taxora Inc

If you are working from home due to the pandemic, you’re eligible for a big tax break here’s how to get it. While many employees are saving money on transit costs or the price of lunches, they are accumulating other expenses, such as desks and ergonomic chairs, printers and scanners, paper and ink. There may also be other costs: courier services and increased data and electricity usage at home, for example. Not all employees are paying the increased costs of working from ho...me out-of-pocket. Some people are getting a flat benefit from their employer to improve their physical surroundings or get faster internet service. This would be a taxable benefit. For those paying for office-related expenses out-of-pocket, there is relief in sight unless the federal government makes a quick change to tax regulations. Under the current system, anyone who works from home regularly can deduct a portion of their business-related expenses from their taxable income. The expenses that fall into this category include utility payments, rent and business-related cellphone usage. Purchases of new office equipment are considered fixed assets; a portion of their cost can depreciated each year. For homeowners, deductible expenses also include maintenance and upgrades to the home office. Regular employees who aren’t working from home don’t usually have access to these deductions. These deductions usually apply to freelancers or salespeople who work from their homes. However, the pandemic has changed the tax landscape. Employees working from home under COVID-19 can file Revenue Canada form T2200. The form allows those working from home to determine the percentage of their home that is used as an office and deduct that percentage of relevant expenses on their tax return. You calculate the home office percentage by measuring the space in your home that is used as an office and dividing it by the total square footage of the finished portion of the home. The only catch is that you have to work from home more than 50% of the time over the course of a calendar year. But given that many Ontario employees started working from home in March and will probably continue doing so until spring 2021, it’s likely that lots of workers will qualify. Reducing taxable income is a real bonus for employees, since it will make a difference in the amount of tax they pay. The key to filing a T2200 is that your employer must fill it out and sign it for your deductions to be allowed. Previously, these deductions were used only by the self-employed or salespeople who always worked from home.

The Federal Government is rolling out new temporary income support programs Canadians impacted by COVID-19 and are looking for temporary income support can now apply to three new benefits launched by the Canada Revenue Agency (CRA). The CRA has rolled out three new benefits to help those facing financial difficulty during the pandemic:... 1) The Canada Recovery Benefit (CRB), 2) The Canada Recovery Sickness Benefit (CRSB) and 3) The Canada Recovery Caregiving Benefit (CRCB). While applications for CRSB and CRCB are available, CRB applications will not be accepted until Oct 12th. Workers who are sick or must self-isolate for COVID-19-related reasons, or have underlying conditions that make them more susceptible to COVID-19 can apply for CRSB, which will provide $500 per week for up to two weeks. Those who are unable to work because they must care for a child under 12 years old not able to attend school because of the pandemic, or other family members requiring supervised care, who cannot attend regular care facilities because of COVID-19, can apply for CRCB. CRCB will provide $500 per week for up to 26 weeks per household. Lastly, the CRB is for workers who are self-employed or are not eligible for Employment Insurance (EI) and still require income support. This benefit is specifically for those who have stopped working due to COVID-19 or whose income has dropped by at least 50% or more. These workers must be available and looking for work and must accept work when it is reasonable to do so. People eligible for CRB will be provided $500 per week for up to 26 weeks. To be eligible for any of the new temporary income supports, people must have earned at least $5,000, before deductions, in 2019, 2020 or in the 12 months prior to applying. CRA has also included new processes to make sure the benefits will reach the targeted people: Shorter eligibility periods of one week for CRSB and CRCB and two weeks for the CRB. Retroactive periods, meaning that people will be required to apply after the period has ended. A 10% tax withholding at source. Three to five day window to receive payments for applications made by direct deposit and a 10 to 12 day window by cheque via mail. CRA may also request additional information before processing applications. Like CERB, people who have received the benefit payments and find out they are not eligible will have to repay the amounts. To protect Canadians from fraud and non-compliance, the CRA is taking steps to implement additional verification and security measures up-front, to help ensure that the benefit payments are delivered only to people who are entitled to receive them. Canadians can apply for these benefits online through CRA’s My Account or call 1-800-959-8281.

If you haven't filed your tax returns yet, June 1st is the deadline to file your returns. Reach out to us asap.If you haven't filed your tax returns yet, June 1st is the deadline to file your returns. Reach out to us asap.

Canada Emergency Response Benefit (CERB) Eligibility Requirements and Periods In the wake of COVID-19 pandemic, the Government of Canada has established a new emergency benefit program called the Canada Emergency Response Benefit (CERB) for those who have stopped working because of COVID-19. This emergency benefit program may provide you with temporary income support of $500 a week for up to 16 weeks (four week periods each).... To know whether you are eligible, for how long this benefit will be available and how to apply for this benefit, please visit our blog at the link below: https://www.taxora.ca/cerb/

Business Credit Availability Program (BCAP) In addition to CEBA, the Government of Canada has established another Business Credit Availability Program (BCAP). It will help support access to financing for Canadian businesses. Export Development Canada (EDC) and the Business Development Bank of Canada are providing $65 billion of financial support, working closely with the private sector lenders. For more details about this program and what businesses will qualify, please visit... our blog at the link and go to other financial support section: https://www.taxora.ca/ceba/ See more