Working from home has had its pros and cons.  Travel (public transit, gas) and meal expenses have decreased but work from home expenses have increased.  Expenses such as electricity, water and heat would have definitely increased in most households.

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The Canadian Government have made some recent changes on home office expenses for employees.  If you worked more than 50% of the time from home for at least four consecutive weeks in 2020 due to COVID-19, you are eligible to claim $2 for each day you worked from home during that period.  If you worked more than four consecutive days at home in 2020 due to COVID-19, you can continue to claim $2 for each additional day up to a maximum of $400 per individual.  This only applies to the 2020 tax year.

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There are a few different methods to look at see which one best fits your situation:

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Temporary flat rate method:

• claim $2 for each day you worked from home in 2020 due to COVID-19. Maximum of $400
• employer does not have to complete and sign Form T2200
• no documentation to support your claim is required

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Detailed Method:

• claim the actual amounts you paid and provide supporting documentation
• a completed and signed Form T2200S/Form T2200 from your employer is required

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If you own a business and you use a portion of your home as your workspace, you are eligible to claim Business Use of Home Expenses.  Some conditions apply such as it is your principal place of business and you use the space only to earn your business income, use it on a regular basis for meeting clients, customers, etc.

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You may deduct a portion of your maintenance costs such as home insurance, heating, electricity and cleaning materials.  If you’d like to learn more about what other expenses you may claim, click here.

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