You may be eligible to deduct home office expenses (work-space-in-the-home expenses, office supplies, and certain phone expenses) if you worked from home in 2020 due to COVID-19. Utilize CRA’s home office calculator to determine if you require a T2200S form.
The Canada Revenue Agency has introduced a temporary simplified process for employees to claim a deduction for home office expenses while working from home due to COVID-19. For the 2020 taxation year, employees will have two options to choose from if/when claiming home office expenses as long as all eligibility criteria are met. This amount is claimed on your personal income tax return and could reduce the amount of your income tax liability.
Option 1: Temporary Flat Rate Method
- Applies to eligible employees working from home in 2020 due to Covid-19.
- Individuals can claim $2.00 for each day worked from home up to a maximum of $400 annually (200 working days) per individual. Days off do not count.
- Multiple people working from the same home can each make a claim
- This method can only be used for the 2020 tax year
- You do not need to: calculate the size of your workspace, keep supporting documents or get Form T2200S (Declaration of Conditions of Employment) from your employer
- You cannot claim any other employment expenses (line 22900) if you are using the flat rate method
Option 2: Detailed Method
- Applies to eligible employees working from home in 2020 due to Covid-19 and eligible employees required to work from home
- Individuals can claim actual amounts paid with supporting documents & calculation of workspace
- Must have a completed Form T2200S/T2200 from your employer
- Deduction amount may vary dependent on your residence situation (rent vs. own)
To determine which is the best method for you, please visit the CRA’s online Home Office Expenses calculator to estimate a detailed work from home expense claim. You may find the flat rate method provides a greater deduction. If you wish to opt for Option 2, your employer should provide a T2200S form upon request. (Please note this form only validates the condition of employment requiring you to work from home because of the COVID-19 pandemic. It does not provide the value of your eligible deductions, as that is a personal tax matter. In the event of a CRA audit, you must be prepared to present valid proof (e.g. receipts, floorplans, rental contracts, etc.) of any deductions you have claimed. The CRA also occasionally performs in-person inspections of home office claims looking at, among other details, proof that the space is being used solely or jointly for working purposes).