covid-19 deduction for working from home

[csc]

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

[TaxGuyBill]

Are you preparing a US return or a Canadian return?

[csc]

U S Return

[sjrcpa]

Where do you think this deduction should show up?

Is it particular to a state?

[IRonMaN]

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

[itonewbie]

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.