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Client Communication:

Work from Home Deductions for 2020

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You may be eligible to claim home office expenses on your 2020 return as your employer (in line with the rules) is requiring you to work from home. Hopefully for not more than a couple months but while in effect this deduction is available.

In order to claim this deduction, you will need:

  1. Form T2200 Declaration of Conditions of Employment completed and signed by your employer

  2. A summary of related costs you paid for that were not reimbursed for the work from home period. You can deduct the part of your costs that relates to your work space, such as the cost of electricity, heating, and maintenance. However, you cannot deduct mortgage interest, property taxes, home insurance, or capital cost allowance.

  3. Percentage of work-space-in-the-home i.e. area of the work space divided by the total finished area

Source: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-229-other-employment-expenses/salaried-employees/work-space-home-expenses.html

December 29, 2020

New Temporary Flat Rate Method

Eligibility

  • If you worked more than 50% of the time from home for a period of at least four consecutive
  • weeks in 2020 due to the COVID-19. You can claim $2 for each day you worked from home during that period.
  • The maximum you can claim for the temporary flat rate method: $400 per individual.
  • This method can only be used for the 2020 tax year.

Days that CAN be Counted

  • Days you worked full-time hours from home
  • Days you worked part-time hours from home

Days that CANNOT be Counted

  • Days off
  • Vacation days
  • Sick leave days
  • Other leave or absence

If you use this simplified method, you don’t have to calculate your work space details or keep supporting documents. Your employer does not have to complete and sign the Form T2200S or Form T2200.

If you have a larger claim, you can still choose to use the detailed method to calculate your employment expenses, get a completed and signed Form T2200S or Form T2200 from your employer and keep documents to support your claim.

New Eligible Expenses

The CRA has expanded the list of work from home eligible expenses to include home internet access fees.

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