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Working from Home in Canada: Tax Deductions

Working from Home in Canada: Tax Deductions Canadians who have retired from work opt to continue working either as an encore career to as they engage in an entirely new venture. While some of them consider being a part of an office where they work there full time, many are considering working at home—and enjoying all the perks and convenience of working therein. Apart from being a comfortable means to be working, working from home can bring about a number of tax deduction for the employee or self-employed. And it’s always well worth checking whether your home office qualifies for these deductions. It is important to note though that tax deductible expenses vary on the kind of worker you are—deductions for employees and self-employed individuals are different. For Employees: Employees who work at home only qualifies for tax deduction if their employers specifically require them to maintain an office at home. This also requires their employers to sign a T2200 federal form to certify the fact. Your home office must also satisfy either of these conditions: The workspace must be where you “principally perform the duties of employment.” Principally means more than 50 per cent of the time. Failing the first condition, the workspace must be used only to earn employment income, and you must use it on a regular and continuing basis to meet clients or customers. For qualified employees, there is a specific list of what can and can’t be deducted. Employees can only deduct a percentage of the cost of maintaining the office. Deductions include the cost of heating, electricity, minor repairs and cleaning. Mortgages are generally not deductible. For Self-Employed: The range of available home office deductions for self-employed expands dramatically. Aside from a prorated portion of your rent, maintenance and repairs, and utility; self-employed workers can also claim a portion of home insurance, mortgage interest costs, and property taxes. A business phone line is also completely deductible. Self-employed workers can also claim capital cost allowance on the home office portion of their home. Home office expense claims though can’t be used to create or increase a loss from employment. The CRA’s T2125 form (Statement of Business or Professional Activities) must be filled out to claim these expenses. Page 3 of this form deals with the calculation of business-use-of-home expenses. Opting to work from home can bring you an enormous savings on tax; however, know that this too requires a lot of paper work and documentation to be availed of....

Working from Home Tax Deduction in the US

Working from Home Tax Deduction in the US Many retired professionals considering working from home on their retirement. Aside from augmenting their income, this move also brings about a lot of personal benefits—personal purposefulness and fulfillment being two of them. While working after retirement under an employment may have some negative effects on one’s retirement benefits, working from home may means tax deductions. Americans these days choose the more practical road. That is, by engaging in businesses at the comfort of their homes. These businesses could be virtual enterprise undertaken online while at home, or others establish their own consulting office there. Regardless of whether you are self-employed or employed and working at your own home, you can avail of home office tax deduction if you use a portion of your home for your business or work. As a rule, you can claim your home business deduction when you use a part of your home exclusively and regularly as: your principal place of business, or a place to meet or deal with patients, clients or customers in the normal course of your business, or in any connection with your trade or business where the business portion of your home is a separate structure not attached to your home. Tax deductions may also be availed of as you use a portion of your property for storage use, rental use, or day-care facility use. You are required to use the property regularly for this purpose while not exclusively. The amount that you can deduct will depend on the percentage of your home that you actually use for the business. Note too that deduction for certain expenses may be limited if your gross income is less than your total business expense. For those providing daycare services and storing business inventory or product samples are governed by special rules on deduction. And if you are an employee working at home, other additional rules may apply for claiming the home office deduction. In choosing among your options with regards to your post-retirement plans, it is important to weigh the tax benefits, deductions, and income implications before you embark on the same. This is important as it should form part of your financial and business planning....

Write a book in retirement

If you have a “definable” skill and years of experience it is not that difficult to write a book about it. You can be called what has been coined an “infopreneur”. An entrepreneur selling information. As I have mentioned before, there is a growing market for valuable, hard-to-find real information. Yes, I know everything there is to be known is on the internet. You just have to find it and TRUST it. Believe me, I have been on the internet since it came about 25 years ago. I have made my living off the internet so to speak. There is a lot of garbage out there. In my opinion, what is the most in demand is a hands-on publication in a specific industry written by a TRUSTED and experienced person that has “Been there, Done that” for many years. For example, although I am an experienced photographer, I wanted to offer my services to my favorite realtor. (My wife). After the first house, I realized I needed some insight. After spending some time reading blogs, I came across a book. Written by a guy in the industry, who had done hundreds of session. The book gave me the confidence I could do this well. Case closed. So if you have long-term experience in any field, experience and knowledge that is hard to find – think about writing a book. There are several sites out there you can sell it. Amazon for...

Work-at-Home Scams

As a retired person, working from home has a nice ring to it. But sometimes too nice. Work-at-home scams have been around for many years – however, in the past few years, the US Federal Trade Commission has seen the number of complaints nearly double. Some obvious red flags to look out for: Work-at-home jobs bragging through emails promising to pay more than you ever dreamed of. Companies that charge you a fee to obtain more information about a job. Payment for the privilege of working is rarely acceptable. Use common sense. There are lots of opportunities to work from home. Don’t get caught in a scam. If you have some skills, try registering at...

Work as a translator

If you have a second language, many businesses hire translators for different languages. Here in Canada we have two official languages. English and French.  I know a lady who is “almost” retired. She is a realtor and looking for something to supplement income, and that she liked to do. She is native French Canadian, with fluent English. She registered with upwork.com and got a long-term part time job translating for a company setting up shop in Quebec. Thus the need for translation of all documents to french. This you can do from...

Ways Retired Seniors Can Make Money Online

Most of the online jobs are simple to acquire and easy to execute, even for the retired people. In fact, many people who do online jobs do it as a part-time thing. Nevertheless, working online can still be a full-time job for anyone willing to take that path. People who spend long hours at home can earn a living from working online. Retired seniors spend most of their free time in the house of the retirement homes. Taking up some extra activities that can also generate some income is a good way for them to pass the time. The World Wide Web is never short of viable options when it comes to online work. Here are some few options that retired seniors can do and make an extra coin. •    Online Re-seller Working as an online re-seller is not that much of a demanding job. It does, however, need someone who is a marketing savvy. A re-seller should have a good understanding of the products he or she sells and have a good promotional skill for his or her services. Having these attributes will make it easy to sell products through online auctions like on eBay. •    Call Center Employee Retired people love have company, someone to converse with and what better way to do just that than working as a call center employee. Customers call companies to place inquiries or complaints; the companies have virtual call centers that route the calls to agents who are on standby to help the customers. The job simply needs someone to understand the company’s products and services and offer a listening ear and solutions to inquiries or complaints. •    Data Entry Online data entry work is always a viable option for people who have some time on their hand and wish to make some quick money. Most of the jobs are offered by individuals or companies that wish to take advantage or be on the digital platform. Their objectives are to have documented data typed or inputted into a computer or workstation sever or to update their documents. •    Transcriber Some individuals are in a profession that sees them do long hours in interviews. The easy way to keep track of everything is audio recording of the interview. However, such individuals are on a very busy schedule that they do not find time to transcribe the recordings, and this creates a job opportunity. Transcribing is simple and easy. All the retired senior needs to do is listen and type away to the bank. •    Writing Articles Writing articles has a broad take...

Work From Home Fields Every Retiree Should Know About...

Work From Home Fields Every Retiree Should Know About Many retirees explore working from home, for a variety of reasons. Whether it is to supplement and prolong their retirement income, or if it is to do something they may enjoy. When deciding to work from home, a computer will most likely be involved. If you do not know your way around a computer too much, a class may help get started. Just learning how to use basic office programs, hook up and use a printer, and diagnose small problems. Ideally, you would work from home in field you are already familiar with, whether it be a hobby or previous career. Reservations Some of the larger airlines and hotels outsource their reservations departments to home-based employees. That means, that when people call in to make a reservation, you would answer the phone and help them through the process, booking their flight. There would be a training program and all the tools would be provided, so this would not be intimidating to get started.Tutor Depending on your previous career and expertise, tutoring can be very lucrative, and easy to do from home. It would be as simple as posting an ad online or in the newspaper offering your services. Whether it be French lessons, or music lessons, or consulting people on starting their own business. This can be very easy money if the subject is something you know well. It would also be a great way to interact with new people.Writing Many websites need good writers, whether it be product reviews or blogs or just general information. All that is needed is basic grammar knowledge, and fluency in whatever language you are writing. This can be very lucrative depending on the ability of the writer. Not only that, it is very good for the mind to write, and it can help stave off age related brain problems.Medical Transcribing Medical transcribers are always needed, though this is not the most fun job, it certainly pays consistently. This involves transcribing documents for doctors and hospitals, this does require a little bit of education on how to use the software and do it correctly and efficiently. This is a very low stress job that offers consistent earnings.Babysit Babysitting can be a great way to make money, and to keep yourself active. This would be ideal for someone who does not want to sit in front of a computer. Keep in mind, if you are wanting to do this on a large scale, then you need to be properly prepared. Including having insurance and learning...

5 Easy Ways to Make Money Online

5 Easy Ways to Make Money Online A lot of unemployed, retired, or even stay at home parents want to make money online. It is a great way to supplement income, or even make a full income. There are hundreds of scams out there unfortunately, but there are multiple ways to make money online that are perfectly legitimate. Of course, real work is required just like any other job, but being able to work at home, and even make some money can certainly contribute to a good family budget. Or in the case of other people, it can pay all of the bills, enabling you to avoid the corporate world all together. eBay eBay is a great online source to make money, though it has become harder in recent years. A lot of successful people on eBay make their own products and sell them. This is great for the artist or creative person. Others simply buy in bulk and re-sell, others go to garage sales and thrift shops to find their warez. It is important, whatever you sell, to find your niche, your sweet spot to say. Some people know purses, others know books, once you find your niche, making money will be so easy. Remember when selling there are eBay fees, fees to accept payments and shipping fees. Writing Many people make a decent income online by writing for people. Whether they are doing freelance journalism, helping research papers, or just writing for websites. The nice thing about this is, only basic writing skills are required. Though of course more knowledge would be helpful, but knowing the language fluently including grammar works. Once you become established at writing, you can literally pick your clients if you are good enough at it. Translating This requires being fully fluent in two languages. If you have this skill, certainly translating can be very lucrative. Whether it be court documents, magazine articles, or legal documents. This is an in demand skill, and once you are known in the industry you will probably have too much work to handle on your own. Digital Assistants There are thousands upon thousands of digital assistants around the world. They could do any number of tasks, from making an excel document to researching bakeries in NYC. Usually strong writing and organizational skills are required. Sometimes people do not pay well, but if you are good and organized this will not be a problem. Freelancing There are countless websites out there that allow you to sell your skills to people and businesses. If you have a skill that...

Work at Home Job for Retirees without License or Degree...

You have decided that you still wish to earn even during retirement. Unfortunately, you belong to those who failed to earn a degree. Do you still have a chance of finding a job? Definitely! Try these job work at home jobs and you can still earn a living even without presenting an academic degree to your clients and employers. Data Entry Competition may be stiff, but if you have the basic computer knowledge then you may apply at big companies for a data entry job. Some companies give priority to these job seekers as a token of their gratitude for their earlier service to society. Operator Large companies would need tech support for their business. They enjoy hiring retired people because they work best in filling out complains and pacifying violent callers. Telemarketer This is a stressful job, but you can definitely do it at home. You just need to be patient because not all of your calls will deliver positive results. It is simple work with high chances of receiving a good pay. Online Teacher The Academe has digital. Many are interested to find online tutors. If you are skilled in a specific language, then go ahead and advertise your services online. Your student will be thrilled to learn from you and will be paid a good amount of money for your...

Blogging.. can you make money?

You have probably seen or heard that many retired folks have set up blogs and are making a nice income. I have, and yes – some money has been made. It is definitely possible, but it will take some skills and work. The basic premise is that you create a blog, write about stuff that interests you and monetize the blog with advertising. The trick is to get traffic to the blog. Because the ratio of people clicking on the ad can be very low, like less than 1%. So if your ad click gives you a $1 commission for example, you will need 1,000 visitors a day to get 10 sales = $10. We will post a complete guide to getting targeted traffic to your...