Home Office Expenses for Employees

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Did you have to work from home at some point in 2020 due to Covid-19 restrictions?

If so, CRA has released new rules to allow you to deduct some of the additional costs you may have incurred as a result.  These include the following:

New Temporary Flat Rate Method

  • You must have worked more than 50% of the time from home for a period of at least 4 weeks in 2020 due to Covid-19
    You can claim $2/day (to a maximum of $400)

New Optional Detailed Method

  • You are able to claim a deduction for actual expenses incurred for the period you worked from home if:
    • You worked from home or your employer required you to work from home in 2020 due to Covid-19
    • You worked from home more than 50% of the time for a period of 4 weeks
    • You obtain a simplified T2200S or T777S form from your employer (if an employee)You were required to pay for expenses used directly in your work during the period (see eligible expense listing below).

New Eligible Expense Listing

  • CRA released a list of 59 items outlining what can and cannot be claimed including things like internet access, ink cartridges, printer paper, sticky notes, toner, and more.
  • For the entire list visit 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#h-3

For more information visit the Government of Canada’s website. You can also contact one of our accountants today.

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