Those with pandemic-related work from home expenses that go beyond the $500 limit of the flat rate method, however, can use a simplified version of the “detailed method,” which was introduced in 2020. All they have to do is enter the number of days they worked from home on a T777S Statement of Employment Expenses for Working at Home Due to COVID-19 form. The temporary flat rate method is more appealing than the traditional detailed method because taxpayers don’t have to calculate the size of their workspace, collect receipts or have their employer fill out any additional paperwork. “As so many of us had to work from home during the pandemic, the creation of the temporary flat rate method has made it possible for us to get back some of the costs we incurred while working from home” Ms. “The vast majority of employees wouldn’t normally qualify to submit employment expenses, because they weren’t required to have them,” says Susan Watkin, an accountant and spokesperson for TurboTax Canada. Those who work on commission could also claim a portion of their home insurance, property taxes and leases for technology equipment like cell phones, laptops and printers. Known as the “detailed method,” salaried employees could claim a portion of their utilities, Internet, minor repairs, maintenance costs and rent. Workers who made the claims were also required to track their expenses, hang on to receipts for those items and list them in a T777 Statement of Employment Expenses form. Roohi says the employer would have to complete and submit a T2200 Declaration of Conditions of Employment to the Canada Revenue Agency (CRA). “These changes allow more flexibility for people to claim certain home office expenses,” says Hanna Roohi, a partner at Roohi CPA LLP, in Mississauga, Ont.īefore the pandemic, Canadians could only claim home office expenses if their employment contract explicitly required them to make those purchases. Ottawa also increased the maximum deduction to $500 for both years.
The government has said the temporary deduction can be used again for the 2021 tax year (those taxes are due April 30) as well as for the 2022 tax year. People who do their own taxes can easily make the claims, especially when using the right tax solution. The deduction can be claimed on personal tax returns and helps Canadians reduce the amount of income they pay tax on in a given year.
The federal government first introduced a temporary flat rate home office expense tax deduction for the 2020 tax year after the pandemic forced many people to use their kitchens, bedrooms and living rooms as makeshift workspaces.Ĭanadians who were required to work from home as a direct result of the pandemic were able to claim $2 for every day they worked remotely, to a maximum of $400 for the year, based on certain criteria. People working from home amid the pandemic will get some relief again this tax season after Ottawa extended its temporary home office tax deduction program, with a few minor changes.