Moving expenses tax deduction turbotax update#

The temporary flat rate method is more appealing than the traditional detailed method because taxpayers don’t have to calculate the size of their workspace, collect receipts or have their employer fill out any additional paperwork. “As so many of us had to work from home during the pandemic, the creation of the temporary flat rate method has made it possible for us to get back some of the costs we incurred while working from home” Ms. “The vast majority of employees wouldn’t normally qualify to submit employment expenses, because they weren’t required to have them,” says Susan Watkin, an accountant and spokesperson for TurboTax Canada. Those who work on commission could also claim a portion of their home insurance, property taxes and leases for technology equipment like cell phones, laptops and printers. Known as the “detailed method,” salaried employees could claim a portion of their utilities, Internet, minor repairs, maintenance costs and rent. Workers who made the claims were also required to track their expenses, hang on to receipts for those items and list them in a T777 Statement of Employment Expenses form. Roohi says the employer would have to complete and submit a T2200 Declaration of Conditions of Employment to the Canada Revenue Agency (CRA). “These changes allow more flexibility for people to claim certain home office expenses,” says Hanna Roohi, a partner at Roohi CPA LLP, in Mississauga, Ont.īefore the pandemic, Canadians could only claim home office expenses if their employment contract explicitly required them to make those purchases.

Ottawa also increased the maximum deduction to $500 for both years. The government has said the temporary deduction can be used again for the 2021 tax year (those taxes are due April 30) as well as for the 2022 tax year. People who do their own taxes can easily make the claims, especially when using the right tax solution. We are dedicated to empowering taxpayers to leverage available deductions, minimize their tax liability, and enhance their financial well-being.The deduction can be claimed on personal tax returns and helps Canadians reduce the amount of income they pay tax on in a given year. Taxpayers are encouraged to consult with qualified tax professionals or utilize reliable tax software, such as TurboTax, to ensure accurate reporting and maximize their eligible deductions.įile My Taxes Online remains committed to providing individuals and businesses with valuable information and innovative solutions to navigate complex tax regulations. These updates to the mileage tax deduction present an excellent opportunity for taxpayers to optimize their tax savings and potentially reduce their overall tax liability. Utilizing mileage-tracking apps, spreadsheets, or other recordkeeping tools can greatly simplify the process and help ensure accurate documentation. This includes documenting the date, purpose, starting and ending locations, and total miles driven for each deductible trip. The expanded eligibility allows individuals and businesses to maximize their deductions and reduce their overall tax burden.Īccurate Recordkeeping: As always, it is crucial for taxpayers to maintain detailed and accurate records of their mileage-related expenses. This includes mileage related to business travel, medical appointments, relocation, and charitable volunteering.

These increased rates provide taxpayers with higher deduction amounts for eligible mileage driven in relation to their business, medical, and moving activities.Įxpanded Eligible Deductions: Taxpayers can claim mileage deductions for a wider range of eligible activities. Standard Mileage Rate Increase: The IRS has increased the standard mileage rate for business and other purposes. Key highlights of the updated mileage tax deduction for 2023 include: These changes offer taxpayers enhanced opportunities to save on their tax obligations by claiming mileage-related expenses.

Moving expenses tax deduction turbotax update#

TRAVERSE CITY, MI, US, July 13, 2023/ / - File My Taxes Online, is excited to announce the recent update by the Internal Revenue Service (IRS) regarding the mileage tax deduction for the tax year 2023. File My Taxes Online, is excited to announce the recent update by the Internal Revenue Service (IRS) regarding the mileage tax deduction for the tax year 2023.