There are two methods to calculate your home office expenses:

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1) Temporary flat rate method

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If you worked from home for the majority of time (over 50%) during a consecutive 4 week period, you are eligible to claim $2 for every day that you worked from home during that time span. Furthermore, any additional days that you worked from home in 2020 because of the pandemic can also be claimed up to a maximum total of $400. Using this method does not require any documentation or signed T2200. You can claim the amount on line 22900 of your tax return.

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2) Detailed method

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In order to use this method you must ensure:

●      you worked greater than 50% of the time from home for at least one month

●      you completed and signed the T2200-s Declaration of Conditions of Employment for Working at Home Due to COVID-19

●      you kept supporting documents should the CRA request them

●      any expenses reimbursed by your employer cannot be claimed

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The following information is required to complete this method:

●      List containing every expense excluding the use of a home such as office supplies, cell phone usages, etc. on lines 1 and 2 of the T777-s

●      The percentage of space used for work in proportion to the total home space (ie. using one room in a 4 room house for your workspace is considered 25% of the total space)

●      List of expenses pertaining to the use of the home office space such as: utilities, rent, maintenance, property taxes, etc. on line 6-10 of the T777-s

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Here is an example using the detailed method:

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James is using a room in his house that represents 20% of the total house size. He is using this room for 40 hours out of a total of 168 hours in the week.

The employment use percentage is = 20% x 40/168 = 4.8%

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James also incurred the following expenses during the period he had to work from home:

●      Electricity: $1,300

●      Heat: $900

●      Internet: $225

●      Paper and ink cartridge: $350

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Total utilities expenses = $1,300 + $900 + $225 = $2425

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Office space expenses = $2,425 * 4.8% = $116.4

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His total allowable expenses = office space expenses + other expenses

= $116.4 + $350 = $466.4

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NOTE: James did not include the office supplies (paper and ink cartridge) in the calculation of the office space since these expenses were used in full for his work.

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Use the CRA calculator to get an estimate of your employment expenses for this year.

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