Working-from-Home 2020 Expenses

The government announced that due to Covid-19 related closures, and many people forced to work from home, salaried and hourly non-union employees will be eligible to claim home office expenses on their 2020 personal income tax returns. This includes work-space-in-the-home, office supplies, and home internet fees. There are 2 options on how to make this claim:

Option 1 – New Temporary Flat Rate Method

To use this method, you must meet all of the following criteria:

·     You worked from home in 2020 due to the COVID-19 pandemic;

·     You worked more than 50% of the time from home for a period of at least 4 consecutive weeks;

·     You are only claiming home office expenses and no other employment expenses;

·     Your employer did not reimburse you for all your home office expenses.

Using the Temporary Flat Rate Method:

·     You are eligible to claim $2/day for each day you worked from home in 2020 due to Covid-19. The maximum an individual can claim using this method is $400 (200 working days).

·     You will not be required to submit supporting receipts or detailed calculations, nor will you be required to submit Form T2200 – Declaration of Conditions of Employment.

Option 2 – Detailed Method

To use this method, you must meet all of the following criteria:

·     You worked from home in 2020 due to COVID-19 or your employer required you to work from home;

·     You were required to pay for expenses related to your home workspace without reimbursement;

·     You worked more than 50% of the time at your home workspace for at least 4 consecutive weeks;

·     Your expenses were directly used to support your work.

Using the Detailed Method:

·     Measure and total the size of your workspace – whether it is a designated room/office in the house or a common/shared workspace;

·     Obtain the total size of all finished areas in your home (including your workspace) – i.e.. the square footage of your home;

·     If using a common space in the home such as the kitchen table or family room, determine your average weekly working hours;

·      If you have a designated room/office that is solely used for work, you do not need to determine the average weekly hours worked;

·     Collect and maintain supporting documents for all expenses you can claim for the period you worked from home;

·     Obtain from your employer Form T2200S – Declaration of Conditions of Employment for Working at Home Due to COVID-19. Keep this form in your personal records in case CRA requests it as part of its audit or review;

·     Please note that as employee, you cannot claim mortgage interest, property taxes or home insurance. If you pay rent for your home, rent is an eligible expense.


Your HS & Partners Team