COVID-19 | Home Office Expenses for Employees

In response to COVID-19 challenges that have forced people to work from home the CRA has made the home office expenses deduction available to more Canadians and simplified the way employees can claim these expenses on their personal income tax returns for the 2020 tax year.

Eligibility

  • Employees who worked from home on a full-time or part-time basis for more than 50% of the time for at least four consecutive weeks in 2020 due to COVID-19 will now be eligible to claim the home office expenses deduction for 2020.
  • The use of a shorter qualifying period will ensure that more employees can claim the deduction than would otherwise have been possible under longstanding practice.

There are two COVID–19 Home Office Expenses Claim Methods

Temporary Flat Rate MethodDetailed Method
Eligible employees working from home during 2020 due to the COVID – 19 PandemicCriteria to claim the employment portion of actual amounts you paid while you worked from home (for employees required to work from home or employees who worked from home due to the COVID-19 pandemic)
You can claim $2 for each day that you worked part time or full time from home due to the COVID-19 pandemic, up to a maximum of $400 (200 Days)You can claim the actual amounts you paid supported by documentation
Your employer is not required to complete and sign Form T2200You must have a completed and signed Form T2200S / Form T2200 from your employer
You fill out Option 1 – Temporary flat rate method on Form T777SYou fill out Option 2 – Detailed method on Form T777S
Refer to Form T777S for the list of Eligible Expenses, Non-eligible expenses, & the calculations of claimable expenses
You are not required to keep supporting documentsYou must keep your supporting documents
You are not required to calculate your workspace use as a % of your homeYou need to calculate your workspace as a % of your home. The CRA has a calculator available for this – here
What counts as a workday?
– Days you worked full-time hours from home
– Days you worked part-time hours from home
What does not count:
– Days off
– Vacation days
– Sick leave days
– Other leave or absence
What counts as a workday?
– Days you worked full-time hours from home
– Days you worked part-time hours from home
What does not count:
– Days off
– Vacation days
– Sick leave days
– Other leave or absence

Frequently Asked Questions & Form T2200S & Form T777S can be found here – Home office expenses for employees.