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Hundreds of thousands of Canadians could get a tax break for working from home during pandemic – CBC.ca

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Hundreds of thousands of Canadians could be eligible for a lucrative tax deduction as a result of the COVID-19 pandemic.

But just how many get to claim that deduction could depend on their employers, and on how the Canada Revenue Agency deals with a series of questions raised by the sudden changes that have compelled millions of Canadians to work from home.

Armando Minicucci, a partner with the accounting firm Grant Thornton, said he expects a big increase in the number of Canadians able to claim a deduction for turning part of their home into an office.

“I would say the number would have to be in the hundreds of thousands,” he said.

It’s called the “work-space-in-the-home” deduction and you can claim it if you work from home more than 50 per cent of the time, or if you have a separate home office and use it to meet clients.

Either way, your employer has to certify that working from home is a condition of your employment. According to the Canada Revenue Agency (CRA), 174,210 Canadians took advantage of the deduction on their 2018 tax returns, claiming an average per person of $1,561.

The deduction allows those who qualify for it to reduce their tax bills by claiming a portion of their household expenses — such as utilities, cleaning and rent.

Normally, the number of people who can claim the deduction is limited. To qualify, you either have to spend more than 50 per cent of your time working from home, or you have to use a home office exclusively for work and regularly meet clients there.

How the pandemic changed things

The current rules require anyone claiming the deduction to get their employer to fill out a form — T2200 — certifying that working from home is a condition of employment. Without that form, the claim would be rejected, said the CRA.

But that was before the pandemic hit.

In March, as COVID-19 began to spread in Canada, public health authorities urged Canadians to stay home. Governments issued orders closing non-essential businesses and employers across the country began telling employees who could do their jobs remotely to work from home.

By mid-April, 3.3 million Canadians had moved out of their regular workplaces and were working from home, according to Statistics Canada’s June Labour Force Survey. While that number dropped by 400,000 in June, millions of Canadians are still working from home.

Some employers, like Ottawa-based Shopify, have told employees they can work from home indefinitely.

By September, those sent home to work in March will have worked at least half the year at home — potentially putting them in a position to qualify for the deduction.

“We’re getting further and further along in this pandemic where a lot of employees are going to have exceeded the six-month mark, and in that situation they should qualify,” said Minicucci.

“But for those employees that have not worked the full six months or more at home, there’s a question with respect to whether or not they meet the eligibility criteria.”

Whether those who haven’t worked a full six months from home will be allowed to claim the deduction is one of the questions Canada’s tax experts have asked the CRA to clarify, said Minicucci.

Keep those receipts

Even if some of those working from home end up falling short of the six-month benchmark, they can still deduct the cost of many of the supplies they have had to consume to get the job done, he said.

“You’re looking at things like pens, paper, ink cartridges for your printer at home,” he said. “Those are items that are consumed. Capital items, unfortunately, are not deductible. So if you buy a printer, not deductible. If you buy a laptop, not deductible. Those are capital items.

“But if you buy items that are being consumed during the course of performing your employment duties, they are deductible. The 50 per cent criteria is not a condition in order to claim expenses for items that you consumed while performing your duties at home.”

An employee works from home over the Zoom platform. Accountants are asking the federal government to clarify the rules on claiming the home office deduction. (Gabby Jones/Bloomberg)

Minicucci said now is a good time to talk with your employer about updating your employment contract, and to keep track of your receipts.

The pandemic has raised a number of questions that Canada’s tax experts have asked the CRA to clarify, he added.

For example, will the CRA require each person to have a formal employment contract? Given the stay at home orders, should meeting clients through videoconference or teleconference platforms from home count as “meeting clients at home”? Should the CRA relax the rule that says you can’t claim internet as a work-from-home expense because it’s considered a fixed cost?

A lot of paperwork for employers

The Chartered Professional Accountants of Canada (CPA Canada) also anticipates an increase in the number of Canadians claiming the home workspace deduction for the first time, and is also calling for the CRA to clarify several questions.

For example — should the CRA still require employers to fill out a T2200 form for every employee they asked to work at home?

“Employers will now be required to complete a great number of T2200s,” CPA Canada said in a background paper. “This will add a significant administrative burden for employers. To alleviate the burden, consideration should be given to using an alternative method to simplify the process for the pandemic.”

CPA Canada said it would like the CRA to clarify whether the “more than 50 per cent of the time” benchmark is calculated for the tax year, or for the period the employee was required to work from home. It also said the CRA should consider simplifying the process by allowing taxpayers to claim a per diem deduction for costs related to working from home.

No rule changes planned, says Finance

However, officials from the CRA and the Finance Department told CBC News there are no plans currently to change the rules on the home workspace deduction.

Conservative revenue critic Marty Morantz is calling on the government to clarify its plans for the deduction, and has put questions about the deduction on the House of Commons’ order paper. He said those who have been working from home should be allowed to claim the deduction.

“I think it would be very reasonable for the government to say to folks who were doing their best to comply during the crisis by working at home, and incurring expenses, that they should have the opportunity to claim the deduction,” he said.

Aaron Wudrick, federal director of the Canadian Taxpayers Federation, agreed.

“The deduction exists for a reason — to defray work-related costs that just happen to be home-related and if that reason now applies to a broader class of people, they should be able to make use of it,” he said.

Elizabeth Thompson can be reached at elizabeth.thompson@cbc.ca

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STD epidemic slows as new syphilis and gonorrhea cases fall in US

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NEW YORK (AP) — The U.S. syphilis epidemic slowed dramatically last year, gonorrhea cases fell and chlamydia cases remained below prepandemic levels, according to federal data released Tuesday.

The numbers represented some good news about sexually transmitted diseases, which experienced some alarming increases in past years due to declining condom use, inadequate sex education, and reduced testing and treatment when the COVID-19 pandemic hit.

Last year, cases of the most infectious stages of syphilis fell 10% from the year before — the first substantial decline in more than two decades. Gonorrhea cases dropped 7%, marking a second straight year of decline and bringing the number below what it was in 2019.

“I’m encouraged, and it’s been a long time since I felt that way” about the nation’s epidemic of sexually transmitted infections, said the CDC’s Dr. Jonathan Mermin. “Something is working.”

More than 2.4 million cases of syphilis, gonorrhea and chlamydia were diagnosed and reported last year — 1.6 million cases of chlamydia, 600,000 of gonorrhea, and more than 209,000 of syphilis.

Syphilis is a particular concern. For centuries, it was a common but feared infection that could deform the body and end in death. New cases plummeted in the U.S. starting in the 1940s when infection-fighting antibiotics became widely available, and they trended down for a half century after that. By 2002, however, cases began rising again, with men who have sex with other men being disproportionately affected.

The new report found cases of syphilis in their early, most infectious stages dropped 13% among gay and bisexual men. It was the first such drop since the agency began reporting data for that group in the mid-2000s.

However, there was a 12% increase in the rate of cases of unknown- or later-stage syphilis — a reflection of people infected years ago.

Cases of syphilis in newborns, passed on from infected mothers, also rose. There were nearly 4,000 cases, including 279 stillbirths and infant deaths.

“This means pregnant women are not being tested often enough,” said Dr. Jeffrey Klausner, a professor of medicine at the University of Southern California.

What caused some of the STD trends to improve? Several experts say one contributor is the growing use of an antibiotic as a “morning-after pill.” Studies have shown that taking doxycycline within 72 hours of unprotected sex cuts the risk of developing syphilis, gonorrhea and chlamydia.

In June, the CDC started recommending doxycycline as a morning-after pill, specifically for gay and bisexual men and transgender women who recently had an STD diagnosis. But health departments and organizations in some cities had been giving the pills to people for a couple years.

Some experts believe that the 2022 mpox outbreak — which mainly hit gay and bisexual men — may have had a lingering effect on sexual behavior in 2023, or at least on people’s willingness to get tested when strange sores appeared.

Another factor may have been an increase in the number of health workers testing people for infections, doing contact tracing and connecting people to treatment. Congress gave $1.2 billion to expand the workforce over five years, including $600 million to states, cities and territories that get STD prevention funding from CDC.

Last year had the “most activity with that funding throughout the U.S.,” said David Harvey, executive director of the National Coalition of STD Directors.

However, Congress ended the funds early as a part of last year’s debt ceiling deal, cutting off $400 million. Some people already have lost their jobs, said a spokeswoman for Harvey’s organization.

Still, Harvey said he had reasons for optimism, including the growing use of doxycycline and a push for at-home STD test kits.

Also, there are reasons to think the next presidential administration could get behind STD prevention. In 2019, then-President Donald Trump announced a campaign to “eliminate” the U.S. HIV epidemic by 2030. (Federal health officials later clarified that the actual goal was a huge reduction in new infections — fewer than 3,000 a year.)

There were nearly 32,000 new HIV infections in 2022, the CDC estimates. But a boost in public health funding for HIV could also also help bring down other sexually transmitted infections, experts said.

“When the government puts in resources, puts in money, we see declines in STDs,” Klausner said.

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The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institute’s Science and Educational Media Group. The AP is solely responsible for all content.

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World’s largest active volcano Mauna Loa showed telltale warning signs before erupting in 2022

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WASHINGTON (AP) — Scientists can’t know precisely when a volcano is about to erupt, but they can sometimes pick up telltale signs.

That happened two years ago with the world’s largest active volcano. About two months before Mauna Loa spewed rivers of glowing orange molten lava, geologists detected small earthquakes nearby and other signs, and they warned residents on Hawaii‘s Big Island.

Now a study of the volcano’s lava confirms their timeline for when the molten rock below was on the move.

“Volcanoes are tricky because we don’t get to watch directly what’s happening inside – we have to look for other signs,” said Erik Klemetti Gonzalez, a volcano expert at Denison University, who was not involved in the study.

Upswelling ground and increased earthquake activity near the volcano resulted from magma rising from lower levels of Earth’s crust to fill chambers beneath the volcano, said Kendra Lynn, a research geologist at the Hawaiian Volcano Observatory and co-author of a new study in Nature Communications.

When pressure was high enough, the magma broke through brittle surface rock and became lava – and the eruption began in late November 2022. Later, researchers collected samples of volcanic rock for analysis.

The chemical makeup of certain crystals within the lava indicated that around 70 days before the eruption, large quantities of molten rock had moved from around 1.9 miles (3 kilometers) to 3 miles (5 kilometers) under the summit to a mile (2 kilometers) or less beneath, the study found. This matched the timeline the geologists had observed with other signs.

The last time Mauna Loa erupted was in 1984. Most of the U.S. volcanoes that scientists consider to be active are found in Hawaii, Alaska and the West Coast.

Worldwide, around 585 volcanoes are considered active.

Scientists can’t predict eruptions, but they can make a “forecast,” said Ben Andrews, who heads the global volcano program at the Smithsonian Institution and who was not involved in the study.

Andrews compared volcano forecasts to weather forecasts – informed “probabilities” that an event will occur. And better data about the past behavior of specific volcanos can help researchers finetune forecasts of future activity, experts say.

(asterisk)We can look for similar patterns in the future and expect that there’s a higher probability of conditions for an eruption happening,” said Klemetti Gonzalez.

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The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institute’s Science and Educational Media Group. The AP is solely responsible for all content.

The Canadian Press. All rights reserved.

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Waymo’s robotaxis now open to anyone who wants a driverless ride in Los Angeles

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Waymo on Tuesday opened its robotaxi service to anyone who wants a ride around Los Angeles, marking another milestone in the evolution of self-driving car technology since the company began as a secret project at Google 15 years ago.

The expansion comes eight months after Waymo began offering rides in Los Angeles to a limited group of passengers chosen from a waiting list that had ballooned to more than 300,000 people. Now, anyone with the Waymo One smartphone app will be able to request a ride around an 80-square-mile (129-square-kilometer) territory spanning the second largest U.S. city.

After Waymo received approval from California regulators to charge for rides 15 months ago, the company initially chose to launch its operations in San Francisco before offering a limited service in Los Angeles.

Before deciding to compete against conventional ride-hailing pioneers Uber and Lyft in California, Waymo unleashed its robotaxis in Phoenix in 2020 and has been steadily extending the reach of its service in that Arizona city ever since.

Driverless rides are proving to be more than just a novelty. Waymo says it now transports more than 50,000 weekly passengers in its robotaxis, a volume of business numbers that helped the company recently raise $5.6 billion from its corporate parent Alphabet and a list of other investors that included venture capital firm Andreesen Horowitz and financial management firm T. Rowe Price.

“Our service has matured quickly and our riders are embracing the many benefits of fully autonomous driving,” Waymo co-CEO Tekedra Mawakana said in a blog post.

Despite its inroads, Waymo is still believed to be losing money. Although Alphabet doesn’t disclose Waymo’s financial results, the robotaxi is a major part of an “Other Bets” division that had suffered an operating loss of $3.3 billion through the first nine months of this year, down from a setback of $4.2 billion at the same time last year.

But Waymo has come a long way since Google began working on self-driving cars in 2009 as part of project “Chauffeur.” Since its 2016 spinoff from Google, Waymo has established itself as the clear leader in a robotaxi industry that’s getting more congested.

Electric auto pioneer Tesla is aiming to launch a rival “Cybercab” service by 2026, although its CEO Elon Musk said he hopes the company can get the required regulatory clearances to operate in Texas and California by next year.

Tesla’s projected timeline for competing against Waymo has been met with skepticism because Musk has made unfulfilled promises about the company’s self-driving car technology for nearly a decade.

Meanwhile, Waymo’s robotaxis have driven more than 20 million fully autonomous miles and provided more than 2 million rides to passengers without encountering a serious accident that resulted in its operations being sidelined.

That safety record is a stark contrast to one of its early rivals, Cruise, a robotaxi service owned by General Motors. Cruise’s California license was suspended last year after one of its driverless cars in San Francisco dragged a jaywalking pedestrian who had been struck by a different car driven by a human.

Cruise is now trying to rebound by joining forces with Uber to make some of its services available next year in U.S. cities that still haven’t been announced. But Waymo also has forged a similar alliance with Uber to dispatch its robotaxi in Atlanta and Austin, Texas next year.

Another robotaxi service, Amazon’s Zoox, is hoping to begin offering driverless rides to the general public in Las Vegas at some point next year before also launching in San Francisco.

The Canadian Press. All rights reserved.

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