Are you someone who is looking to claim personal tax? Have you thought about hiring an accounting service to help you file the claim? If you said yes to both these questions then keep scrolling down because we have got you covered.
Why Should You Claim A Personal Tax Return?
Home office expenses are usually claimed on a personal tax return. The deductions help in reducing the amount of your income that you pay on the tax. This means that your overall liability on income tax also gets reduced.
What Is The Temporary Flat Rate Method? How Is It Calculated Through Accounting Services?
A temporary flat rate method helps in simplifying your claim for a home office expense. This includes the home expenses, the office supply, and the phone expenses all at the same time. So, if you are someone who is still working half the time from home, you can easily claim $2 for every day you worked from home. The period of working from home should at least be four consecutive weeks after the pandemic hit the world. As an individual, you can claim $400 at maximum for working from home under the home office expenses for employees working through COVID-19. Just keep in mind that this method of calculating the claim would only work after 2020.
Here Is How You Can Easily Do Auditing Yourself And Calculate What You Should Add To This Claim:
- Do not calculate the area of your working space.
- Do not keep any supporting documents with you.
Here is how your employer can calculate the claim by not doing the following:
- They do not have to complete the form or sign up at T2200S or T2200 like employees.
Here are a few easy steps to help you find out if you are capable of filing for the claim or not:
- Find Out If You Are Eligible
You can easily find out whether or not you are eligible to file for the claim.
- Fill Out The Form
When you start filling out the form, you need to calculate the total number of days you worked from home in the year 2020 when the pandemic hit the world and then multiply the total number of days by $2. Remember that you can only go up to $400 for the claim you are seeking in return. So, the maximum number of days you worked from home can only be 200 days.
- Determine An Appropriate Number Of Days You Worked From Home
The best way to calculate your total number of days is by using the temporary flat rate method. Just follow the process and then attach the form to your income tax return.
- Claim The Deduction On Your Tax Return
In the form, you will see Line 9939, you should add the claim amount over there with your other home office expenses.
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