How to Maximize Your Work-From-Home Tax Deductions
The pandemic changed the way we work - possibly forever. What started as an emergency response to a global crisis has evolved into an undeniable shift in workplace culture. More and more people are choosing (or fighting to keep) their work-from-home setups, and for good reason. Remote work offers flexibility, better work-life balance, and, for us neurodivergent folks, relief from the traditional office's bright, noisy, overstimulating hellscape.
Of course, not everyone loves the idea. Plenty of power-hungry bosses are still desperate to get workers back in their cubicles, clinging to their outdated belief that productivity requires in-person micromanagement. However, remote work has proven to be an efficient, cost-effective solution for organizations and leaders that trust and support their employees. Ditching the office lease saves businesses thousands, while employees benefit from reduced commuting costs, fewer distractions, and an overall improved quality of life.
But then comes tax season - and suddenly, all those work-from-home perks start to feel a little more complicated.
Remote Work and Taxes: What Can You Write Off?
One of the most significant advantages of working from home (aside from being able to wear pajamas all day) is the potential for tax write-offs. The Canadian government recognizes that when you use your home as an office, you’re incurring additional costs that benefit the company you work for. This is why they allow employees and business owners to deduct some of those expenses. To learn more about home office deductions, read this blog post: Home Office Deductions for Employees and Self-Employed Workers
Unfortunately, figuring out what you can and can’t write off isn’t as simple as just submitting your internet bill and calling it a day. The rules can be confusing, and many people either claim too little (missing out on tax savings) or claim too much (risking an audit and penalties).
That’s why so many remote workers skip the whole thing altogether, leaving money on the table because they don’t want to deal with the hassle.
Let’s change that.
Home Office Expenses: What You Need to Know
If you work from home as a salaried employee or a self-employed business owner, you may be eligible to deduct a portion of your household expenses.
These include:
Utilities (electricity, heat, water)
Internet and phone bills (if used for work)
Rent or mortgage interest
Home insurance
Property taxes
Office supplies and furniture
The key here is that you can only deduct the percentage of these expenses related to your workspace. For example, if your home office is used exclusively for work and takes up 10% of your total living space, you can claim 10% of eligible household expenses.
Sounds easy enough, right? When it comes time to crunch the numbers, most people freeze. And that’s where my Home Office Expense Workbooks come in.
How My Home Office Expense Workbooks Can Help
I created these workbooks because I saw firsthand how many people were leaving money on the table simply because they didn’t know how to calculate their deductions.
These workbooks are designed to make the process simple, with easy-to-follow steps that help you:
Identify which expenses you can deduct
Calculate the percentage of your home that qualifies as an office space
Organize your receipts and records so you’re prepared if the CRA comes knocking
No more scrambling at tax time or guessing whether you’re claiming the right amount. This workbook takes the stress out of home office deductions, ensuring you maximize your tax return without risking errors that could trigger an audit.
Business Use of a Personal Car: Another Overlooked Deduction
If you’re self-employed or use your personal vehicle for work, you may also be eligible to deduct a portion of your car expenses. Many people assume that only full-time delivery drivers or tradespeople qualify for these deductions, but that’s not true. If you drive to client meetings, make deliveries, or run errands for your business, those kilometers add up - and so do the potential deductions.
Eligible car expenses include:
Gas
Insurance
Maintenance and repairs
Depreciation (if you own the vehicle)
Lease payments (if you lease the vehicle)
Again, the tricky part is determining what percentage of your car use is business-related versus personal. You need to track your mileage and apply the correct proportion of expenses - which is precisely why I created the following workbooks: Business Use of a Personal Car Workbook.
These tools helps you:
Log your work-related mileage accurately
Calculate your deductible expenses without confusion
Stay compliant with CRA requirements
Why You Shouldn’t Skip These Deductions
Too many remote workers and self-employed folks assume that tax write-offs aren’t worth the effort. But trust me, they add up.
Think about it: if you’re spending $2,400 a month on rent and you can legally deduct 10% for your home office, that’s a tax deduction of $2,880 per year . Add in utilities, internet, and office supplies; your total write-off could be significant!
The same goes for car expenses. If you drive 10,000 km for business in a year and your total car expenses amount to $5,000, you could be eligible for a $2,500 deduction (assuming you use your vehicle for business 50% of the time).
These deductions reduce your taxable income, meaning you pay less in taxes or get a bigger refund - money that could be reinvested in your business or used to cover other expenses.
Make Tax Time Less Painful
I get it - nobody likes doing taxes. But if you’re working from home, you owe it to yourself to take advantage of the deductions you’re entitled to. And you don’t have to figure it all out on your own.
With my Home Office Expense Workbooks and Business Use of a Personal Car Workbook, you’ll have the tools to navigate tax season confidently. No more stress or guesswork - just clear, straightforward calculations that help you keep more of your hard-earned money.
So before you write off (pun intended) the idea of claiming your home office or car expenses, grab these workbooks and make tax time a little less dreadful. Future you will thank you.
Still have questions and/or need support? Click here to reach out!
I love making finance less stressful and more intuitive for entrepreneurs. If tax season feels like a headache, my Write-Off Guide can help! It’s a straightforward, real-world breakdown of what you can and can’t deduct, plus a handy checklist to keep your expenses organized. No more last-minute scrambling or second-guessing—just clarity and confidence when tax time rolls around.