Home Office Expenses For Employees

The federal government has acknowledged that, due to COVID-19, there were a higher number of employees who worked from home in 2020. CRA has made three changes to how home office expenses can be claimed on your 2020 personal tax return:

1. New temporary flat-rate method:

The new temporary flat-rate method is a simplified way to claim your home office expenses.  You can use this method if you have worked more than 50% of the time from home for at least 4 consecutive weeks in 2020 due to COVID-19. The flat-rate is $2 for all days worked either full-time or part-time from home due to COVID-19 to a maximum of $400 (200 working days) per person. The flat-rate will not require your employer to sign a T2200 and if there are multiple people working in the same home, they can each make a claim.

2. New detailed method:

You can use the new detailed method if you meet the following criteria:

  • worked more than 50% of the time from home for a period of at least 4 consecutive weeks in 2020 due to COVID-19
  • you have a completed and signed Form T2200S or T2200 from your employer
  • the expenses are directly related to your work during the period.

CRA has simplified the employer signed form (T2200S), provided a calculator to assist you in calculating your home office claim and will accept electronic signatures.

3. New eligible expenses:

CRA has released a 59-item list that you can reference to see what is deductible or not. It is broken down by deductibility for commission-based persons and employees.

CRA has added home internet access fees as an eligible expense when using the detailed method.

For more information and to see the list of deductible items and home office expense calculator please click the following link:

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-229-other-employment-expenses/work-space-home-expenses/what-changes.html

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