January 19, 2022 – Deducting Work from Home Expenses

by | Jan 19, 2022 | Industry Updates

CRA released information on how to deduct work from home expenses due to the pandemic for the 2021 and 2022 tax years. There are two ways to deduct the expense:

  1. Temporary flat rate – this simplified method allows you to claim a deduction if, due to the pandemic, you worked from home during the tax year at least 50% of the time for 4 consecutive weeks. You can claim up to $2 per day up to $500 for the 2021 and 2022 tax years. This method eliminates calculating expenses and submission of an employer issued T2200.
  2. Detailed method – you may choose this method if your expenses are more than the $500 maximum allowed by the temporary flat rate. This method requires a calculation of workspace in your home and collection of supporting documents for your expenses. You must also submit a signed T2200 or T2200S from your employer confirming your work from home status. You must also complete a T777S or T777 to claim your expenses.

For more details visit CRA home office expenses for employees.

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