Work from home tax credit for 2023 return

[2023TaxQuestion]

Hi

I am wondering if this credit is still available. I don't see a place to enter the info in Ufile.

thanks

[Geo123]

Hello 2023TaxQuestion,

The T777S Temporary Flat Rate Simplified has been eliminated for 2023.  The other employment expenses remain :

T777 - Eligible employment expenses for an employee 
earmng commission Income 
T777 - Eligible employment expenses for an employee 
earning a salary 
T777 - Eligible employment expenses for forestry 
operations 
T777 - Eligible employment expenses for a salaried 
mus.c.an 
T777 - Eligible employment expenses for an apprentice 
vehicle mechanic, painter. body repairer 
T777 - Eligible employment expenses for a tradesperson

 

[Pete F]

  dd

[2023 WFH - How to in UFile]

How do you actually add the T777 form into UFile to make sure it's accounted for? I see nothing int he interview that lets me add it. Thanks

[Geo123]

Hello 2023 WFH - How to in UFile,

NOTE – you require federal form T2200 from your employer
>>Go to Right Hand Screen - Interview SetUp
>> Employment and other benefits >> Employment expenses
*T777 - Eligible employment expenses for an employee earning commission income < -  - -HERE
*T777 - Eligible employment expenses for an employee earning a salary income  < - - OR-HERE
* T777 - Eligible employment expenses for forestry operations
* T777 - Eligible employment expenses for a salaried musician
*T777 - Eligible employment expenses for an apprentice vehicle mechanic, painter, body repairer
*T777 - Eligible employment expenses for a tradesperson
--------
•    On the "Employment expenses" page that appears, record the name of your employer and all relevant information, please use the form that your employer gave you. Finally, click "Next" at the bottom of the page.
•    To enter your eligible motor vehicle expenses, click on "Motor vehicle expenses" in the "Left side menu on the Interview tab". In this section, choose the appropriate option depending on your situation and complete the page accordingly.*
•    If you received an "Allowance for motor vehicle expenses", enter the amount on the line "Motor vehicle expenses (excl. CCA & interest)".
•    If you worked at home, choose the subsection "Home office expenses" to enter your home office expenses, if you have any.

Eligible Employment Expenses :
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4044/employment-expenses.html

[ConfusedYVR]

Hi there,

Under Employment Expenses, what does "Employment income use for the calculation of work-space-in-the-home expenses" refer to? Is this your gross employment income or is it referring to line 48 of the T777 form (as calculated through the CRA home expenses calculator, called the "employment-use portion" in the summary of the employment-use amount)?

Also, under Home Office Expenses, "Percentage % of home being used for personal purposes", if for example, your workspace is 5% area of your home, would we put 95% as the percentage of the home being used for personal purposes?

Thank you

[Geo123]

Hello ConfusedYVR,

Employment income use for the calculation of work-space-in-the-home expenses

>>gross employment income

Percentage % of home being used for personal purposes

>>put 95% as the percentage of the home being used for personal purposes

[Godzilla]

Hello,

Since my wife and I worked from home in 2023 (as an employee earning a salary), are we going to put the total home expenses such as electricity, home internet, water and telephone on each of our Employment expenses? I read the conditions on Government of Canada site that we can only claim either my wife or myself for these expenses, but not sure if I can put these expenses on both side so Ufile 2023 (Windows) will decide it which of us will get more benefit? Or I need to decide it whether put it these expenses on my side or on her side.

Thank you.

[Geo123]

Hello Godzilla,

Each expense can be claimed only once.  UFile will not optimize or decide who gets more benefit, you should test the two scenarios.

If you and your spouse both worked from home

If you both meet the eligibility criteria, you must decide which expenses each of you will claim. Each expense can be claimed only once.

In order to determine the amount you can deduct, you have to first determine the eligible home office expenses you can claim and then calculate the total employment-use amount of those expenses.

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/expenses-can-claim.html

[Godzilla]

Thanks Geo123.

If I understood, we can only claim once for electricity, home internet and water whether my wife or myself. However, on telephone, can we claim on both side because each of us has our own cellphone and we aren't working to the same company?

Thank you.

[Geo123]

Hello Godzilla,

You are welcome.

Please check with the CRA.  To contact CRA :
1-800-959-8281 for inquiries related to individuals.
 Telephone numbers – Canada Revenue Agency / CRA wait times:
https://www.canada.ca/en/revenue-agency/corporate/contact-information/telephone-numbers.html

[LaurenP]

On 3/7/2024 at 1:01 PM, Geo123 said:

Hello 2023 WFH - How to in UFile,

NOTE – you require federal form T2200 from your employer
>>Go to Right Hand Screen - Interview SetUp
>> Employment and other benefits >> Employment expenses
*T777 - Eligible employment expenses for an employee earning commission income < -  - -HERE
*T777 - Eligible employment expenses for an employee earning a salary income  < - - OR-HERE
* T777 - Eligible employment expenses for forestry operations
* T777 - Eligible employment expenses for a salaried musician
*T777 - Eligible employment expenses for an apprentice vehicle mechanic, painter, body repairer
*T777 - Eligible employment expenses for a tradesperson
--------
•    On the "Employment expenses" page that appears, record the name of your employer and all relevant information, please use the form that your employer gave you. Finally, click "Next" at the bottom of the page.
•    To enter your eligible motor vehicle expenses, click on "Motor vehicle expenses" in the "Left side menu on the Interview tab". In this section, choose the appropriate option depending on your situation and complete the page accordingly.*
•    If you received an "Allowance for motor vehicle expenses", enter the amount on the line "Motor vehicle expenses (excl. CCA & interest)".
•    If you worked at home, choose the subsection "Home office expenses" to enter your home office expenses, if you have any.

Eligible Employment Expenses :
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4044/employment-expenses.html

How do we submit the T2200 with our tax return in ufile? Or do we simply keep the T2200 handy in case we get audited/reassessed and CRA asks for it?

[Geo123]

Hello LaurenP,

The T2200 is part of the tax filing and must be completed as per the T2200 from the employer.  You should keep the hard copy for your records.

[Delbert]

Hello,

I completed home office expenses for salaried employees for two employers. As per CRA, I have to calculate the portion of home office expenses for the income from each employer

UFile is not adding the expenses from each employer. On the tax return it only shows those expenses from the first employer. I believe this is a UFile program issue

[Silvertex]

On 3/9/2024 at 12:56 PM, Geo123 said:

Hello Godzilla,

Each expense can be claimed only once.  UFile will not optimize or decide who gets more benefit, you should test the two scenarios.

If you and your spouse both worked from home

If you both meet the eligibility criteria, you must decide which expenses each of you will claim. Each expense can be claimed only once.

In order to determine the amount you can deduct, you have to first determine the eligible home office expenses you can claim and then calculate the total employment-use amount of those expenses.

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/expenses-can-claim.html

It's not exactly true, if you worked both at your house and you have separated spaces to work, you calculate the portion of your work space use and this what you apply for each home office expense.

As en example, you work in a dedicated office at home which occupy 4% of the house and your wife in another dedicated office which take 6% of the total house.
If you have 1000$ of electricity bill then you can claim 40$ and she can claim 60$...

 

At least, it's my understanding provided by arc:
 

Taylor and Alex are common-law partners. They paid $1,400 monthly for rent. Either Taylor or Alex can claim the full $1,400. Or, they can each claim a portion of the $1,400. They can decide how to share the expense, as long as both shares do not total more than their total rent. However, only the employment-use amount of the monthly rent can be deducted.

To calculate the total employment-use amount of this expense, you must multiply the monthly rent paid by your employment-use percentage of the work space.

Your employment-use percentage of the work space depends on whether you and your spouse used a single work space or worked in different work spaces in the home.

 

[Vesal]

Hello there,

I'm filing my taxes for home office expenses in 2023 using Ufile. I work from home 3 days a week (24 hours) and I use 30% of the house for my work area. I don't understand how I should fill out “Percentage % of home being used for personal purposes“. Is this only based on my work space area?! Meaning that I should put 70%?!

Also for the “Total home expenses incurred (both business and personal use)”,it's asking for the rent heat, electricity, etc. I don't know how to calculate that. Does it mean that I should calculate my total rent over the year and multiply that by 24/168 to reflect the rent, heat, etc for the 3 days a week (24 hours a week) I work from home?!

[Geo123]

Hello Vesal,

30% of the house for my work area = 70%

Employment Expense online calculator :

Indicate the percentage (%) Of your home that is used for personal, non-business relate purposes.

= 100 -c

To calculate the percentage of work-space-in-the-home expenses you can deduct, use a reasonable basis, such as the

area of the work space divided by the total finished area (including hallways, bathrooms, kitchens, etc.).

 

If you are working in a designated room

Since the room is used only for work, the percentage Of your home used as a work space is also the percentage Of your

work space used for employment purposes.

A = Size of work space (designated room or shared area)

B = Total finished area of home

C = Percentage of your home that you used as a work space (rounded two decimal places)

C AE x 100

 

If you are working in a common (shared) area

You need to calculate the percentage of the work space that was used for employment purposes by providing the

numbers of hours worked in that space within a calendar week (7 days or 168 hours).

D = Number of hours (hours worked in a work week)

E = 168 hours

F=D/E

C = Percentage of your home that you used as a work space (rounded two decimal places)

C = A/B x F x 100

 

CRA Employment Expense online calculator :

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/calculate-expenses.html

[Taxtime2020]

<<Post deleted by user as it was incorrect>>

[MSU]

Hello

The CRA calculator allows 100% of maintenance cost in Line 43 if related only to designated work area ( ie bulbs, minor maintenance etc) but ufile does not allow that distinction. It takes everything in Line 43 and multiplies it by % of total household used.

How can I claim the room specific expense in ufile.

[Geo123]

Hello MSU,

The T777 "Percentage of home being used for personal purposes:  [  %]  is a global variable.
It can not be customized for each line item, such as "maintenance and repairs", and the CRA does not permit overrides for T1 consumer tax software.
Should you wish to have this ability you would require our professional tax return solution DTMaxfrom Thomson Reuters.  Please contact :
Sales Department
1 866 653-8629 / DT-sales@thomsonreuters.com
T1: https://www.thomsonreuters.ca/en/dtprofessionalsuite/products/dtmax.html
 

[liulica]

I could not see any deduction amount for home expense in the review, although I alreadu filled and could see T777 form and T2200 form in Tax reture. It looked that amount of home expense which I filled to claim did not come to summary of refund. Could someone tell me what is the reason anf hoe to fix it?

[Geo123]

Hello liulica,

This means that you could not use the credit to reduce your tax payable and the work from home portion was carried forward.

[LHS]

There is no line # in the T777.

1. Which field to fill up the home office cost?

2. What to fill into "the Other home office expenses - specify"?

 

[Geo123]

Hello LHS,

Please seebBelow

>>

[LHS]

Hello Geo123,

Where did you get the Line 16 - Calculation of work-space-in-the-home expenses? I don't find it in Ufile.

[Geo123]

Hello LHS,

Please see below.

[lenny12]

Hello Geo123,

In the following calculation example from the T777, in which field does uFile calculate the hours worked from home? I cannot find the field, and my T777 keeps doing the calculation assuming I work the full 168 hours in a week. Thank you!

Example of how to calculate your employment-use amount (line 48)
You are a salaried employee who worked from home using your dining room table. The dining room represents 12% of the total square footage of your house and is used for work for 40 hours out of a total 168 hours in the week.
You paid $2,400 for electricity, heat, water and Internet, and $12,000 for rent. You enter $2,400 on line 42, $12,000 on line 46, and $14,400 on line 47.
To determine your employment-use amount, you must first calculate your employment-use percentage as follows:
(40 hours÷168 hours)×12%=2.9%
Your employment-use amount is $14,400 from line 47:
($2,400+$12,000)×2.9%=$417.60
Enter $417.60 on line 48.

[Geo123]

Hello lenny12,

You can use the guideline below and adjust the formula to suit your situation.

Employment Expense :
Indicate the percentage (%) Of your home that is used for personal, non-business relate purposes. 
= 100 -c 
To calculate the percentage of work-space-in-the-home expenses you can deduct, use a reasonable basis, such as the 
area of the work space divided by the total finished area (including hallways, bathrooms, kitchens, etc.). 

If you are working in a designated room 
Since the room is used only for work, the percentage Of your home used as a work space is also the percentage Of your 
work space used for employment purposes. 
A = Size of work space (designated room or shared area) 
B = Total finished area of home 
C = Percentage of your home that you used as a work space (rounded two decimal places) 
C AE x 100 

If you are working in a common (shared) area 
You need to calculate the percentage of the work space that was used for employment purposes by providing the 
numbers of hours worked in that space within a calendar week (7 days or 168 hours). 
D = Number of hours (hours worked in a work week) 
E = 168 hours 
F=D/E 
C = Percentage of your home that you used as a work space (rounded two decimal places) 
C = A/B x F x 100
 

[LHS]

Hi Geo123,

Below is my steps to get the T777: 

from there, I only see this:

Where do you get the T777 employment expense p3? Are you using the ufile? Please explain? 

Thanks

[LHS]

Thanks Geo123, I finally find it. I have to click Tax Return, then the T777 employment expense p3 displayed. 

[Geo123]

Hello LHS,

You are welcome.

[j.m]

I moved part way through 2023. How do I add a second "home office expenses" section for the new address?

[Geo123]

Hello j.m,

Please see below - depending on if is commission OR salary.:

[MontrealUfiler]

On 3/7/2024 at 1:01 PM, Geo123 said:

•    If you worked at home, choose the subsection "Home office expenses" to enter your home office expenses, if you have any.

Hi. I selected T777 - Eligible employment expenses for an employee earning a salary and a new page opened, but I do not see the subsection "Home office expenses" and therefore cannot add lines CRA lines 42 to 46. Am I not seeing something obvious?

UPDATE: I now see that it is not on that screen but on a subsequent screen. See left side bar.

 

Edited Sunday at 10:15 PM by MontrealUfiler
SOLVED

[Geo123]

Hello MontrealUfiler,

Please see example below.

Home Office expenses %
Percentage (%) of home being used for personal purposes 97% < = = 3% business use

[Davesub]

Hi there!

Thank you very much for all the great help. Quick question regarding expenses on Form T777. I am a salaried employee. Under "Total home expenses incurred (both business and personal use)" for Heat, Electricity, Home Internet access fees -

A) Should I enter the total annual expense or monthly expense in each line?

B) Should I enter the actual costs I incurred for each category (e.g. Heat, Electricity, etc.) or only the percentage related to my home office use. For example, my office space is only 10% of my total home space. If I spent $1,000 in heating for the year for my house in 2023, should I enter $1,000 in that line, or only $1,000 x 10% = $100?

Thanks!!

 

This is the screen I am referring to:

[Geo123]

Hello Davesub,

You are welcome.  Enter the annual amount and actual costs, do not prorate it.

[HelpmeinMtl]

The T777 section in Ufile wants separate entries for heat and electricity, but I get one bill for both; Hyrdo doesn't separate them.  Can I just fill out one field with the total Hydro amount?

[Geo123]

Hello HelpmeinMtl,

Yes.