As part of the 2021 Economic and Fiscal Update, delivered on December 14, the federal government announced that the work-from-home expense claim simplification employed in 2020 will be extended until 2022.
For the 2021 and 2022 tax year, employees working from home due to the COVID-19 pandemic may be able to claim up to a maximum of $500, a total that takes into account the full year, using the temporary flat rate method, to calculate their home office expenses.
The Government of Canada web content and forms are currently being updated to reflect this change.
Working days include any day during which an employee performs work, at their home, for the employer. There are no minimum hours attached to this, both full-time and part-time employees may count any day on which they performed work for the employer.
Non-working days such as weekends, statutory holidays, vacation or sick days are not counted.
For most employees, this simplified method will provide the maximum deduction allowed without the detailed record-keeping normally required for home office deduction.
Expenses exceeding $2 per working day
Depending on your circumstances, you may be eligible for deductions greater than what the simplified method offers. This will require you to:
- Measure and total the size of your workspace;
- Obtain the total size of all finished areas in your home (including your workspace);
- If using a common space in the home determine average weekly working hours; and
- Collect and maintain supporting documents for all of the expenses you can claim for the period(s) you worked from home
To make a detailed claim, you will require a confirmation of employment form. Upon request, UNBC may issue a T2200S form to validate your conditions of employment to allow you to make a detailed expense claim for your work at home space. To make your request, complete and forward the required Attestation Form to firstname.lastname@example.org. The incrementally greater amount that you may be able to claim using a T2200/T2200S, may not be equal to your investment of time and effort.
Please note this form only validates the condition of employment requiring you to work from home because of the COVID-19 pandemic. It does not provide the value of your eligible deductions, as that is a personal tax matter. In the event of a CRA audit, you must be prepared to present valid proof (e.g. receipts, floorplans, rental contracts, etc.) of any deductions you have claimed. The CRA also occasionally performs in-person inspections of home office claims looking at, among other details, proof that the space is being used solely or jointly for working purposes.
Before requesting a T2200S form we suggest you use the tools that the CRA has created to assist you in estimating a detailed work from home expense claim.
The following tools are available from CRA: