Okay so I have a husband and wife who both work from home. They live in manitoba and their jobs are in BC. They owe money this year so they are try to find any loop holes they can. So in order for them to claim any expenses from working from home they need to have the T2200 filled out correct?
I was playing with amounts in the t777ws and using the example on the CRA website. So on the CRA website it says the amount should go onto line 48 of the T777 but I do not see the amount. Could it be because his income if very high so he will not get this credit anyways.
I was just seeing if it is even worth them asking thier boss to have this T2200 filled out.
Another question would be can they both submit a work from home T777? They both work for different companies.
You have to complete the top portion of the worksheet that indicates which employer .. did that help it populate? I have never had an issue. Use of home is usually a relatively small deduction unless they are commission employees.
Q2 CRA is specific, can only claim workspace for the amount that you are using it.
The use of work space is not the size of the room but the size of the area used.
Of course, each of them can claim an area…just not the same area for the same time period.
Do they share the workspace ? If so, then each would claim their respective percentage for their area…
You can split it by hours worked or if the physical space is separate as in left and right side of the room… then take the actual sq ft of their individual space
Thank you yes very helpful. So what I found out is when you are on the T777 you have to double click on box 48 and it will bring you to the WS ( t777WS) and then all the numbers populate. So that was the step I was missing
Now will filling this out they both work from home 40 per week so hours used for employment would be 40 x 52 week = 2080 and total hrs in the period would also be 2080? am I correct on my thinking
Also do they need to have the T2200 filled out from thier employer?
On the T777, double clicking on any of the bolded, BLACK line numbers will open up the T777WS form. The line numbers that aren’t bolded do not open the T777WS form. Line number 48 is not bolded so doesn’t open that form, unless you are talking about some other Box 48?
And yes, the name of the employer has to be selected on that T777WS.
You CANNOT claim employment expenses (complete the T777) if your client does not have a signed T2200 form. This is a requirement!
The T2200 form is also very specific about what employment expenses the client can claim, so you have to make sure you pay attention to those details. For example, if the clients pay for the use of a cellphone and use for the business and it’s not documented on the T2200 form, it’s best to have the client ask their employer to re-issue the form to include it.
It sounds like your clients would qualify for the Business Use of Homes deduction since 100% of their income is from working at home. Make sure their T2200 form specifies this.
If the client’s work space is a dedicated area in their home used only for business (ie: a spare bedroom), the entire area can be claimed. If shared between both spouses for business and only for business, then a division needs to occur for each of their work spaces in that bedroom. However, if they use the kitchen table as their workspace (which is used for other purposes besides work), then you have to pay attention to only claim their hours of work at the table, whereas the remaining hours would be personal use hours where the table is used by the family for meals, visiting, etc.
Don’t forget to remove statutory holidays, 2 weeks or more of personal vacation time, etc… this really needs to come from in depth conversation with taxpayers.. there may have been a few special projects where certain weeks more hours.
Worth really checking in with clients and ensure you are splitting this correctly.
This is one of those items that if reviewed you want to have really great notes to help the taxpayer support their position
Very helpful like always. So the bold black is what I meant. Thank you for saying it correctly. Sometimes my words are not politically correct.
I have to thank you and the other person for verifying my thoughts. When I don’t do these things all the time I second guess what I know. That is why I am so happy for this forum board.
So he they both need thier bosses to fill out the t2200 and then I can do the t777 form for them. They really only have thier rent to claim as the hydro and internet is included. I need to ask about thier phone also.
And I need to find out if they took a vacation. And any other time off.
Thank you for verifying my thoughts. When I don’t do these things all the time I second guess what I know. That is why I am so happy for this forum board.
So they both need thier bosses to fill out the t2200 and then I can do the t777 form for them. They really only have thier rent to claim as the hydro and internet is included in thier rent. I need to ask about thier phone also.
And I need to find out if they took a vacation. And any other time off. And deduct the stat days. (thanks for mentioning that one to me. I would not even thought of it until after I sent thier returns probably )
I handle all the CRA reviews for our firm, and T777 expenses is one of the most reviewed categories, so you have to make sure that the T2200 is filled out correctly, and that they worked from home at least 51% of the time. If they are required to pay for anything else besides internet, rent, or utilities, that has to be spelled out in the T2200.
If they aren’t working from home more than 51% or more of the time, they can’t claim home office expenses.
Thanks to everyone for your help and for all the things to watch for and to remember to ask about. This client works 100% from home as they live in Manitoba and their jobs is in BC