Home Office Expenses to Claim for 2020 - COVID-19
/The 2020 year has brought about a wide range of challenges due to the COVID-19 pandemic and many Canadians were forced to set up shop at home, whether it be in their kitchens, living rooms or bedrooms.
In response to these challenges CRA has provided some relief in the ability to claim expenses related to this situation. Employees who worked from home more than 50% of the time over a period of four consecutive weeks due to COVID-19 in 2020 are now eligible to claim home office expense deduction for 2020. This shorter qualifying period ensures that more employees can claim the deduction.
There is a new temporary flat rate method introduced by CRA that will allow eligible employees to claim a $2 deduction for each day that they worked from home in that period plus any other days they worked from home due to COVID-19 in 2020 up to a maximum of $400. Using this simplified method would not require the employee to have the form T2200 or T2200S completed and signed by their employer.
For employees looking to claim expenses more $400, the detailed method would have to be used. CRA has also simplified the process for this method by introducing form T2200S and form T777S. A special calculator has been designed to specifically assist employees who are eligible for home office expenses.
For those using the detailed method to calculate their home office expenses, CRA has expanded the list of eligible expenses that can be claimed to include home internet access fees. A comprehensive list of all eligible expenses is available online.
For more information on working from home expenses go to Canada.ca/cra-home-workspace-expenses.