Approximately 40% of Canadians found themselves working from home for a period of time during the pandemic. New in 2020 and extending until 2022, there is an easy way to calculate and claim home office expenses on your tax return.
If you were an employee (receive a T4) and were required to work from home for at least 4 consecutive weeks (either part time or full time), you may be eligible to claim a tax credit of $2/day to a maximum of $500 ($400 in 2020) total to help offset your home office expenses – and you don’t need to produce any receipts! This handy worksheet will help guide you.
There are two other methods to claim expenses this year:
1) a simplified employment expense form T777S – this requires your employer to sign a T2200S form to allow you to claim both home office expenses as well as other employment expenses you may have incurred (not including vehicle). You will be required to produce receipts for this claim, and is typically more beneficial for those who rent their house. Complete "Steps 2 & 3" of our worksheet to make this claim.
2) a full regular employment expense claim – which requires receipts for all expenses and a signed T2200 form by your employer. See a professional accountant to determine which home office expense claim is applicable and most beneficial for your situation.