CRA has announced changes for the 2020 tax season that simplify and expand who is eligible to claim home office expense. Since this is new to so many of us, our team has put together a quick overview (including a short sort video below) with the main points you need to know. To start, you need to decide if the simple method or detailed method is right for you.
Simple Method
- Allows an employee to claim $2 per day, up to a max of $400, to cover home office expenses.
- This WOULD NOT require a T2200 from your employer.
Eligibility
- You worked from home in 2020 due to the pandemic or your employer required you to work from home;
- You worked more than 50% of the time from home for at least 4 consecutive weeks;
- You have a completed T2200s or T2200 form from your employer; and
- The expenses you are claiming were used directly for your work.
Requirements
- Does not require receipts
- Max $400 deduction
Detailed Method
- This applies to employees who have more than $400 in eligible home office expenses.
- This WOULD require a T2200s from your employer.
- The T2200s form is specific to COVID-19 related work from home and is a simplified version of the regular T2200 form.
Eligibility
- You worked from home in 2020 due to the pandemic or your employer required you to work from home;
- You worked more than 50% of the time from home for at least 4 consecutive weeks;
- You have a completed T2200s or T2200 form from your employer; and
- The expenses you are claiming were used directly for your work.
What can you claim?
- Electricity, heat, water;
- Utility portion of your condo fees
- Home internet access fees
- Maintenance and minor repair costs (limited to your workspace)
- Rent paid for a house or apartment where you live
Employees paid commission may also be eligible to claim:
- Home insurance
- Property taxes
- Lease of a cell phone, computer/laptop that is reasonably related to earning commission income
This does not include:
- Desks
- Chair
- Computers
- Items that will be used beyond 2020
CRA has created a great online resource to help calculate your home office expenses – CRA Calculator
REMINDER > The deadline to file your return and pay your taxes is April 30, 2021
