Claiming working from home office expenses
With many Canadians unexpectedly working from home due to the pandemic, the Canada Revenue Agency (CRA) has announced a simplified way employees can claim these expenses on their personal income tax return for the 2020 tax year.
Employees who worked from home more than 50% of the time over a period of a least four consecutive weeks in 2020 due to COVID-19 will now be eligible to claim the home office expenses deduction for 2020. The use of a shorter qualifying period will ensure that more employees can claim the deduction than would otherwise have been possible under long standing practice.
Employees with larger claims for home office expenses can still choose to use the existing detailed method to calculate their home office expenses deduction.
More details claiming home office expenses for employees
Additional information
- The CRA has made the home office expenses deduction available to more Canadians, and simplified the way employees can claim these expenses on their personal income tax return for the 2020 tax year.
- Employees who worked from home more than 50% of the time over a period of a least four consecutive weeks in 2020 due to COVID-19 will now be eligible to claim the home office expenses deduction for 2020. The use of a shorter qualifying period will ensure that more employees can claim the deduction than would otherwise have been possible under longstanding practice.
- A new temporary flat rate method will allow eligible employees to claim a deduction of $2 for each day they worked at home in that period, plus any other days they worked from home in 2020 due to COVID-19 up to a maximum of $400. Under this new method, employees will not have to get Form T2200 or Form T2200S completed and signed by their employer.
- To simplify the process for employees choosing the detailed method, the CRA has launched simplified forms (Form T2200S and Form T777S) and a calculator designed specifically to assist with the calculation of eligible home office expenses.
- The CRA has also published a number of resources to assist both employees and employers, including the Home office expenses for employees web pages, Simplifying the process for claiming a deduction for home office expenses for employees working from home due to COVID-19, Employer-provided benefits and allowances: CRA and COVID-19 backgrounders, as well as Frequently asked questions – Home office expenses for employees, and an Infographic: Working from home?.
- The Department of Finance Canada’s Fall Economic Statement 2020: Supporting Canadians and Fighting COVID-19.
