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:
- 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.
- 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.