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  • Surbhi Dutta

Employee Home Office Deduction



During the pandemic people have been working from home . The Canada Revenue Agency (CRA) introduced a new temporary flat rate method which will help to simplify claiming the deduction for home office expenses for the 2020 tax year.

As an employee, you may be able to claim a deduction for home office expenses such as office supplies, and certain phone expenses. This is claimed on your personal income tax return. These type of deductions reduce the total income and in turn reduce your overall income tax liability.


Eligibility


In order to claim the deduction you must meet all of the following criteria:

  • you worked from home in 2020 due to the COVID-19 pandemic or your employer required you to work from home

  • you worked more than 50% of the time from home for a period of at least four consecutive weeks in 2020

  • have a completed and signed Form T2200S or Form T2200 from your employer (only applicable if the detailed method is used to complete the claim)

  • the expenses are used directly in your work during the period


Simplified method


The new temporary flat rate method simplifies your claim for home office expenses.


You can use this new method if you worked more than 50% of the time from home for a period of at least four consecutive weeks in 2020 due to the COVID-19 pandemic. Under this method you can claim $2 for each day you worked from home during that period plus any additional days you worked at home in 2020 due to the COVID-19 pandemic.


The maximum you can claim using the new temporary flat rate method is $400 (200 working days) per individual.


You do not have to: calculate the size of your work space, keep supporting documents or get Form T2200 completed and signed by your employer.


What counts as a work day

  • days you worked full-time hours from home

  • days you worked part-time hours from home

What days do not count

  • days off

  • vacation days

  • sick leave days

  • other leave or absence


Detailed method


Should you use the detailed method a simplified process was created.


To support you, the CRA:

  • created a simplified Form T2200S and Form T777S

  • created a calculator to help you claim the home office expense deduction that you are entitled to

  • will accept an electronic signature on the Form T2200S and Form T2200 to reduce the necessity for employees and employers to meet in person (applies to the 2020 tax year only)

Should you have any questions please feel free to contact our advisors at Tantelo.