Enhanced Support for Teachers
Under current rules, teachers and early childhood educators may claim a 15-per-cent refundable tax credit based on an amount of up to $1,000 in expenditures made in a taxation year for eligible supplies. This is being updated to 25% refundable tax credit, and would start with the 2021 tax year.
Additionally, the list of eligible supplies will be expanded to include laptops, tablets, and external storage. Please note, you need some certification from your employer (e.g. T2200) that that supplies were eligble, and met the conditions to purchase them. I'll go on record as saying narrow tax credits such as these gum up the tax system, and make it harder to administer. It could be better handled through a broad reduction of taxes, employers providing an allowance, or targeted employment expense deductions, but if you're a teacher and you have questions or wish to make a claim, I'll support you every step of the way.
Enhancing the Home Office Expense Deduction
The government will extend the simplified rules for deducting home office expenses and increase the temporary flat rate to $500 annually. These rules will apply to the 2021 and 2022 tax years. This is an example of a broad deduction that is easy to claim and administer, and recognizes some of the additional costs borne by employees.
There are also a number of extensions for programs, credits for hard hit industries, and credits for clean air improvements. If you have questions about these, or any of the items above, please book a tax advisory and guidance session through my calendar, and if you're already a client, just send me an email. I'm not running a clock, and this is included in your service plan.
