Working from home? On Dec 15, 2020, the Canada Revenue Agency came out with a new tax deduction for Employees working from home due to the COVID 19 Pandemic. This is a Temporary Flat Rate Method that employees can use for Home Office Expense Deduction. The temporary flat rate is used to claim home office expenses like rent, electricity, home internet access fees, office supplies etc. This method does not require you to keep supporting documents and the employer is not required to complete and sign Form T2200. Under this method, you can claim $2 for each day worked from home in 2020 up to a maximum of $400.
The regular method of Home Office Expense is the Detailed Method which requires employers to fill out and sign the T2200. If you think you would have more than $400 of deductions in Home Office Expense, then the detail method would be better. You will need to have supporting documents – receipts and actual amounts. Deduction is determined by % of work space used for home office.
For more info you can visit the CRA website:
