Home office expenses for employees

Home office expenses for employees

Calculate your expenses

To understand the math behind the home office expenses calculation, refer to how the claim is calculated.

To use the calculator, select from the options below.

  • A temporary flat rate of $2 for each day you worked from home due to the COVID-19 pandemic to cover all your home office expenses.
  • You paid home office expenses while working at home due to the COVID-19 pandemic, and you have supporting documents.
  • Home office expenses may have other employment expenses to claim on line 22900 (such as motor vehicle expenses), and you have supporting documents.

How to claim

This deduction is claimed on your personal income tax return. Deductions reduce the amount of income you pay tax on, so they reduce your overall income tax liability.

Temporary flat rate method

This method simplifies your claim for home office expenses (work-space-in-the-home expenses and office supply and phone expenses). If you worked more than 50% of the time from home for at least four consecutive weeks in the year due to the COVID-19 pandemic, you could claim $2 for each day you worked from home during that period. You can then also claim any additional days you worked at home in the year due to the COVID-19 pandemic. The maximum amount you can claim is $400 per individual in 2020 and $500 per individual in 2021 and 2022. You can only use this method for 2020, 2021 and 2022 tax years.

What counts as a workday at home

Simplified for you

You do not have to:

  • calculate the size of your workspace
  • keep supporting documents

Simplified for your employer

Your employer does not have to:

  • complete and sign Form T2200S or Form T2200

What are Form T2200S and Form T2200

Steps

Confirm you are eligible

  1. You must meet the eligibility criteria – Temporary flat rate method to claim your home office expenses.

Fill in the form

  1. Count the total number of days you worked from home in the year due to the COVID-19 pandemic and multiply that by $2 per day. This amount will be your claim for the year (up to a maximum of $400 per individual in 2020 and $500 per individual in 2021 and 2022).
    • # of days you worked from home within the period (maximum 200 days for 2020 and 250 days for 2021 and 2022)
    • times by$2 (temporary flat-rate amount)
    • an equal amount of your claim (to a maximum of $400 in 2020 and $500 in 2021 and 2022)
  1. Example: Determining the number of days worked
  2. Use “Option 1 – Temporary flat rate method” on Form T777S – Statement of Employment Expenses for Working at Home Due to COVID-19 to enter these amounts and attach them to your income tax return for the year.
  3. What is Form T777S

Claim the deduction on your tax return

  1. Enter the amount from Line 9939 on Form T777S to Line 22900, “Other employment expenses,” on your income tax return.
  2. Form T777S must be filed with your tax return.
Review of your claim
  1. Each year, CRA conducts several review activities to maintain the integrity of, and the Canadian public’s confidence in, the Canadian tax system. The CRA may review your claim to validate your eligibility.

Detailed method

This method allows you to claim the actual amounts you paid, supported by documents. You must complete Form T777S or Form T777 and get a completed and signed Form T2200S or Form T2200 from your employer.

Form T777S: Option 1 of 2

Use “Option 2 – Detailed method” on Form T777S to claim your home office expenses if you claim the actual amount paid due to working from home and are not claiming any other employment expenses on line 22900.

Form T777: Option 2 of 2

You must use Form T777 to claim your home office expenses if you are:

  • claiming other employment expenses on line 22900 (for example, motor vehicle expenses), as well as home (work-space-in-the-home, office supplies and certain phone expenses)
  • filing a 2019 or prior-year tax return

Steps

Confirm you are eligible

  1. You must meet the eligibility criteria – Detailed method to claim your home office expenses.

Fill in the application form.

  1. Tip:  Use the calculator to determine the employment-use amount to enter on Form T777S or Form T777.

Form for those working from home due to the COVID-19 pandemic who are only claiming home office expenses: Option 1 of 2

  1. Complete Form T777S – Statement of Employment Expenses for Working at Home Due to COVID-19, if you only claim home office expenses on line 22900.

Form for those required to work from home or those working from home due to the COVID-19 pandemic who are claiming additional employment expenses: Option 2 of 2

  1. Complete Form T777 – Statement of Employment Expenses if you claim additional expenses on line 22900 like motor vehicle, accounting fees, tools, and parking.

Claim the deduction on your tax return

  1. Enter the amount from Line 9368 on Form T777S or Form T777 on Line 22900, “Other employment expenses” on your tax return.
  2. Form T777S or Form T777 must be filed with your tax return. Do not include your supporting documents.
  3. Form T2200S or Form T2200 is kept by you and is not included with your tax return.
  4. Who can sign Form T2200 and Form T2200S

Keep your records

  1. Keep the following records for six years:
    • Declaration of Conditions of Employment (Form T2200S or Form T2200)
    • any receipts, supporting documents and records
Review of your claim
  1. Each year, CRA conducts several review activities to maintain the integrity of, and the Canadian public’s confidence in, the Canadian tax system. The CRA may review your claim to validate your eligibility.

Don’t hesitate to contact RGB Accounting by phone at (416) 932-1915 or by email at info@rgbaccounting.com if you have any questions. We’ll be pleased to assist you.

Source: CRA

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