In calculating the 2022 tax year home office expenses for employees, the CRA offers two methods to determine the available claim, one of which was created to simplify home office expense deductions to address the increase in the number of people working from home during the COVID-19 pandemic. The two methods are the temporary flat rate method and the detailed method.
| Criteria |
Condition |
|---|
| Worked from home |
Worked from home in 2020, 2021, or 2022 due to the COVID-19 pandemic
- If not required to work from home but your employer provided you with the choice to work at home because of the pandemic, then CRA considers you to have worked from home due to COVID-19
|
| Use of workspace |
Worked more than 50% of the time from home for a period of at least four consecutive weeks in the year (2020, 2021, or 2022) |
| Nature of expenses |
Only claiming home office expenses and not claiming any other employment expenses |
| Reimbursement of Expenses |
Employer did not reimburse you for all your home office expenses
- You can still use the temporary flat rate method if employer has reimbursed some of your home office expenses and if the other eligibility criteria are met
|
Do I qualify for the detailed method?
To qualify for the detailed method, you must meet all of the following conditions:
| Criteria |
Condition |
|---|
| Worked from home |
Either:
- Worked from home in 2020, 2021, or 2022 due to the COVID-19 pandemic; OR
- If not required to work from home but your employer provided you with the choice to work at home because of the pandemic, then CRA considers you to have worked from home due to COVID-19
- Employer required you to work from home
|
| Use of workspace |
One of the following applies:
- Your workspace at home (i.e., shared area or designated room) is where you mainly (more than 50% of the time) work for a period of at least four consecutive weeks in the year; OR
- You only use your workspace at home to earn employment income, used regularly and continually for meeting clients, customers, or other people while doing your work
|
| Nature of expenses |
Your expenses are used directly in your work |
| Payment and Reimbursement of Expenses |
You were required to pay for expenses related to your home office
- You cannot claim any expenses that were or will be reimbursed by your employer
|
| Form T2200 |
One of the following applies:
- You have completed and have a signed a copy of Form T2200S (due to COVID-19) from your employer; OR
- You have a completed and have a signed copy of Form T2200 (due to employment) from your employer
|
Why does it matter which method I use?
If eligible for the temporary flat rate method, which simplifies your claim for home office expenses, you can claim $2 for each day that was worked from home during that period as well as additional days worked at home in the year due to the pandemic. However, the maximum claim is up to $400 per individual in 2020 and up to $500 per individual in 2021 and 2022. With this method, you are not required to keep supporting documents nor do you have to determine the size of your workspace to perform the calculation, and your employer is not required to complete and sign Form T2200S or Form T2200.
Alternatively, under the detailed method, eligible employees can claim the actual amounts paid, which may result in a greater claim. However, these amounts must be substantiated by documentation (receipts) and the percentage of your home that you use as a workspace must be calculated. The specific expenses that can be claimed can be found on the Government of Canada website.
I know which method I qualify for; how do I claim the amounts on my tax return?
If you are eligible under either method, be sure to take full advantage of this tax deduction when filing your taxes. To claim the deduction using the Temporary Flat Rate Method, you must include the amount as a deduction in your income tax return as well as file the Form T777S. To claim the deduction using the Detailed Method, you must include the amount as a deduction in your income tax return as well as file the Form T777S or Form T777.