Regular Employees who worked from home due to the COVID-19 may claim ‘Home Office Expenses’ in your 2020 tax return. CRA named it as “work-space-in-the-home” expenses.
How does it work?
There are two ways you may make your claim – the newer and easier way is ‘Temporary Flat Rate method’. The alternative one is ‘Detailed method’ which requires more administrative and paperwork.
Temporary Flat Rate Method
You can claim $2 for each day you worked from home up to a maximum of 200 days. In other words, you can claim up to a maximum of $400 ($2*200hrs) in your 2020 tax return which will deduct your taxable earnings prior to calculating tax payable. Moreover, no paperwork is required. You may calculate your claim using the CRA calculator.
However, there are couple of criteria you have to meet to be eligible:
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worked from home due to COVID-19
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more than 50% of the time worked from home for a period of at least 4 consecutive weeks
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not claiming any other employment expenses
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no related reimbursement from your employer
Detailed Method
If you assess that your actual home office expenses are more than that you may claim the actual amounts you paid, supported by documents. In this case, you must have a completed and signed FORM T2200S from your employer. Moreover you have to fill-up FORM T777s by yourself. Please do not send these FORMs to the CRA with your tax return, instead keep it with you for the next 6 years and provide only if they ask. You may look at the CRA web to find out more detailed eligibility criteria.
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