In the professional sector, working from home reached record highs in 2020. While the trend may have slowed recently, it’s still strong enough that the Canadian government is offering tax breaks to those working remotely.
To be eligible for these deductions, you must have been working from home due to the COVID-19 pandemic under the following conditions:
- For more than 50% of the time
- For at least four consecutive weeks
If you meet the eligibility criteria, there are two deduction methods from which to choose: the temporary flat rate method, which doesn’t require calculating your expenses, and the detailed method, which does require determining the actual amounts you paid in proportion to your home workspace.
Electricity, heat, water
You can claim a portion of your electricity and heating bills. If you live in a municipality that charges for water services, you can also claim a portion of these costs.
A portion of your condominium fees
If a portion of your condo fees was used to pay for electricity, heat, or water services for your condo unit, you can deduct a reasonable percentage. However, if you paid your utility bills directly to the service providers, no portion is deductible.
Internet access fees
Your Internet bill may also be deducted, so long as the amount is reasonable and you used the service for business purposes rather than pleasure, like bingeing online TV series. However, you cannot claim connection fees or fees related to the lease of a modem or router.
Maintenance and minor repair costs
Eligible items include floor cleaner, minor repair of your air conditioner, or installation of a lighting system specifically for your workspace. In short, any maintenance or repair expenses related to your workspace or to the areas of your home that affect your work—such as an air-conditioning unit that is not necessarily in your office—can be deducted.
Rent
Whether you’re renting a house or an apartment, you can claim a reasonable portion of your rent corresponding to your workspace. Unfortunately, if you’re a homeowner who’s working remotely, this deduction doesn’t apply to you.
Office supplies and phone expenses
If your employer does not reimburse work-related phone and office supply expenses, you can claim them on the federal government’s Form T777 or Form T777S. However, keep in mind that only a portion of your basic service plan and long-distance calls made for work is eligible. The Canada Revenue Agency also maintains a list of office supplies that can be claimed.
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20 signs a phone call is really a dangerous scam
When you answer a phone call, you may be slightly wary these days, and with good reason: there are a lot of scammers out there trying to get your money or your personal information over the phone, so it pays to be skeptical. Here are 20 signs the call is probably a scam.
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The caller says you’ve been selected to receive a grant for something from the government, but you need to pay a processing fee. This is never true: governments never charge fees to apply for a grant, and you must apply—you will not be “selected.” Hang up and report the scam to the FTC or CRTC.
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The caller may say you’ve won a free vacation or some other prize, but there’s a shipping or handling fee, so they need your credit card information to send it to you. By law, legitimate contests are not permitted to charge fees (though in Canada they can ask you a skill testing question), so if they do, it’s definitely a scam.
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If you get a call from someone selling tickets to a big-prize lottery from another country, don’t be fooled: not only will you never receive the ticket you “bought,” but it’s actually illegal for Americans to play foreign lotteries. Canadians technically can, but it could be impossible to collect your prize, even if you do win.
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Often, a caller trying to get you to buy something over the phone will offer a bonus or free gift if you purchase what they’re selling right away. But since they called you, there’s no way of knowing if they’re trustworthy, even if they say they work for a company you know. Just say “no thanks” and end the call.
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This scam is common in both the United States and Canada. The caller aggressively claims you owe money on your taxes, and demands you pay immediately or face prosecution or other consequences. But even if you do owe taxes, the government will never call you to demand that you pay—they’ll send a letter to inform you of your balance.
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Many of us have call display now, but if you miss a call from an unfamiliar number and it only rang once, don’t call back out of curiosity. It could be a common scam that redirects you to a pay-per-minute number that plays a fake recorded message and keeps transferring you to keep you on the line and rack up charges.
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Some scammers will say that your credit card or bank is being investigated for fraud, and you need to wire your money somewhere else for safekeeping. When you hang up and call 911 or your bank, the scammer stays on the line and redirects your call to a fake number. This only works on landlines, but it’s always a scam.
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The caller says they’re from Microsoft or another software company and that your computer’s been infected with a dangerous virus or malware, or it’s not running properly, but they can fix it for you if you share your screen with them. This is never legitimate: no software company makes unsolicited calls to computer owners. Just hang up on them.
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A caller may tell you that the warranty on your car is about to expire, but they can sell you an extended warranty. They may demand a down payment immediately, use high-pressure sales tactics, or ask for personal information. Don’t be fooled: these companies are rarely legitimate. If you’re concerned about your warranty, call the manufacturer or your car dealership.
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No matter what the caller says, if they deflect or refuse to answer your questions, it’s probably a scam call. Legitimate businesses and governments will answer any questions you have or direct you to a website where the information is available. Scammers will simply try to coerce or convince you to do what they’re asking.
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Charities do call to solicit donations, but they’ll never insist on taking payment information over the phone. Rather, you can ask them to send you a letter or email or direct you to their secure website. Fake charities will insist on your credit card number. If you want to donate but have concerns, hang up and call the organization’s listed phone number.
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It can be shocking when someone calls and says you’ll be arrested or charged if you don’t pay what they demand. Scammers count on fear and stress doing their work for them. But real organizations and governments simply don’t use these intimidation tactics (and collection agencies aren’t allowed to). End the call and always report these threats to the police.
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Real social security or social insurance numbers can be just as valuable as cash to scammers because they enable identity theft. That’s why you should never give them out over the phone, no matter who says they’re asking or if they just want you to “confirm” your number or other personal information, like your address, phone number, or birthdate.
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Phone scammers sometimes pose as debt collectors to intimidate you into paying, and often falsely use the names of actual businesses. Americans have the right to receive a notice by mail that confirms the amount and type of debt owing, so ask. If they refuse, they’re fake. Also, real debt collectors may not threaten anyone with jail time or physical harm.
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Some scammers now use social media to find the names and whereabouts of your friends and family members, and use that information to impersonate kidnappers and demand ransom money. It may sound terrifying, but it’s most often fake. Definitely don’t pay them anything. Instead, contact your friend or relative immediately, and report the call to the FTC/CRTC or the police.
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Just like buying something over the phone, it’s never advisable to invest in anything an unknown caller is promoting. They might tell you it’s low-risk, and the returns are much higher than other investments, so that’s why it’s only available to you and others who answer the call. This sort of statement is a huge red flag for fraud.
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Never give out credit or chequing account information to a caller you don’t know—even if they say they just want to “confirm” the information is correct. This is the fastest way to be defrauded of your money and possibly your identity. Neither banks nor the government will ever ask you for this information on an unsolicited phone call.
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No matter what the caller is asking you to do, purchase, or provide, one of the red flags of a scam is pressure to make a decision right away. Even if it’s something you want to do, like donate to a charity or buy something, hang up and do your own research to make sure the situation is real.
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Technology now exists to let scammers make it look like a call is coming from your own number. The caller counts on your being confused and picking up, then says they are from the phone company, your phone’s been hacked, and they need you to verify your phone account number and social security number, which of course you should never do.
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Scam artists will often act in an overly friendly manner to try to break down your defences and lull you into trusting them. They might take a personal interest in your life or try to have a pleasant conversation—until they get what they want, whether it’s money or information. Be wary of unknown callers who seem really, really friendly.
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