Home Expense Deductions

During the COVID-19 pandemic, there were temporary measures put in place to allow more Canadians to claim home office expenses.

• For the 2020 tax year, the Canadian government introduced a temporary flat-rate method for claiming home office expenses. This allowed eligible employees who worked from home more than 50% of the time over at least four consecutive weeks in 2020 due to COVID-19 to claim a deduction of $2 for each day they worked from home, up to a maximum of $400.

• However, beyond the temporary measures related to COVID-19, the rules for claiming home office expenses in Canada have been revised again with more rigid requirements.

• Historically, to claim home office expenses, you needed to meet certain criteria, such as using a specific area of your home exclusively for work purposes and having your employer provide you with a T2200 form confirming the need for a home office.

• Eligible employees who want to claim a deduction for 2023 must use the standard method, which requires them to obtain Form T2200: Declaration of Conditions of Employment from their employers.

• To help you sort out the actual details of home office expenses here is a great resource that is available directly from Canada Revenue Agency.

• If you are eligible for this important deduction, you still have time to make it before the April 30th tax filing deadline.