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covid-19 deduction for working from home

Level 1

I need to know where to enter in Lacerte the Employment Expenses for working from home due to Covid-19 if using the temporary flat rate method from form T777S

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5 Replies 5
Level 14

Are you preparing a US return or a Canadian return?


Level 1

U S Return

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Level 15

Where do you think this deduction should show up?

Is it particular to a state?

Level 15

Why are you trying to prepare an American tax return with a Canadian form?

Barber! Why didn't I think of this before? Getting paid to give out bad tax advice - need I say more? I've run with scissors for years so it is a natural fit.
Level 15

Sounds like your client may have been telecommuting from Canada.  Have you considered whether Canada will have the first right to tax the compensation?

In any case, whatever method allowed under T777S is irrelevant for US tax purposes.  All income, deductions, and credits must still be computed in accordance with US tax law.

Depending on the length of his presence and level of activities conducted by your client and his other colleagues in Canada, your client's presence and activities may also have created PE risks to the employer - many a time, corporate tax and finance teams, which have the expertise to review and mitigate such exposures, are blindsided by flexible work arrangements organized by line managers and HR.

Still an AllStar