2020 Work From Home

Did you work from home during 2020? New for 2020 there are temporary changes for Work From Home Claims

Here is what you need to know 

Are you an Employer? The new form T2200S will need to be certified and signed for your employees if they were required to work from home due to COVID-19. (https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t2200s.html)

SIMPLIFIED METHOD 

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 pandemic, you can claim $2 for each day you worked from home during that period. You can then also claim $2 for any additional days you worked at home in 2020 due to the COVID-19 pandemic. The maximum you can claim for the temporary flat rate method is $400 per individual. You will not need receipts.

DETAILED METHOD

You are eligible to claim a deduction for home office expenses for the period you worked from home, if you meet all of the criteria:

1. you worked from home in 2020 due to the COVID-19 pandemic or your employer required you to work from home
2. you worked more than 50% of the time from home for a period of at least four consecutive weeks in 2020
3. have a completed and signed Form T2200S or Form T2200 from your employer
4. the expenses are used directly in your work during the period

If you are using the detailed method you should review the eligible expenses for work from home here - https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/t777/t777-19e.pdf

Try this new calculator from CRA to maximize your claim and go through various eligible expenses- 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/work-space-home-expenses/calculate-expenses.html

What Expenses Can You Claim?

Home Office Expenses can include 

Phone Expenses

The CRA has broadened the list of normal office expenses to include:

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/work-space-home-expenses/what-changes.html#h-3

• Computer (Comissioned employees only)
• Envelopes
• Folders
• Highlighters
• Ink Cartridges
• Note-books
• Paper Clips
• Pens / Pencils
• Printer Paper
• Specialty Paper
• Stamps / Postage
• Stationery items
• Sticky Notes
• Toner
• Home internet access fees

Note that there are still alot of items not allowed, you can see this list here including:

• Chairs
• Calculator
• Cables, Monitors, Mice
• Desk
• Webcam

REMINDER - These expenses only apply to employee incurred expenses, if you were reimbursed by your employer (up to $500 for these expenses) you should not include them, nor should you include expenses that are owned by your employer.