Home office expenses for employees
How to claim
This deduction is claimed on your personal income tax return. Deductions reduce the amount of income you pay tax on, so they reduce your overall income tax liability.
On this page
Temporary flat rate method
This method simplifies your claim for home office expenses (work-space-in-the-home expenses and office supply and phone expenses). 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 any additional days you worked at home in 2020 due to the COVID-19 pandemic. The maximum amount that can be claimed is $400 per individual. This method can only be used for the 2020 tax year.
What counts as a work day at home
Days that can be counted:
- days you worked full-time hours from home
- days you worked part-time hours from home
Days that cannot be counted:
- days off
- vacation days
- sick leave days
- other leave or absence
Simplified for you
You do not have to:
- calculate the size of your work space
- keep supporting documents
Simplified for your employer
Your employer does not have to:
- complete and sign Form T2200S or Form T2200
What are Form T2200S and Form T2200
Form T2200S
Form T2200
Steps
-
Confirm you are eligible
You must meet the eligibility criteria - Temporary flat rate method to claim your home office expenses.
-
Fill in the form
Count the total number of days you worked from home in 2020 due to the COVID-19 pandemic and multiply that by $2 per day. This amount will be your claim for 2020 (up to a maximum of $400 per individual).
- # of days you worked from home within the period (maximum 200)
- times by $2 (temporary flat rate amount)
- equals Amount of your claim (to a maximum of $400)
Example: Determining the number of days worked
Alex began working from home March 16.
She worked from home on weekdays between March 16 and December 31 (209 days). Subtracting the days she did not work, including statutory holidays (6 days), two weeks of holidays (10 days), and sick days (3 days), Alex worked at home for 190 days.
- 209 (weekdays from March 16 and December 31)
- minus 6 (statutory holidays)
- minus 10 (2 weeks of vacation)
- minus 3 (3 sick days)
- equals 190 days worked at home
To calculate her claim, Alex multiplied the number of days she worked at home by the $2 temporary flat rate amount.
- 190 (maximum 200)
- times by $2 (daily claim amount)
- equals $380 (to a maximum of $400)
Alex can claim home office expenses of $380 using the temporary flat rate method.
Use "Option 1 – Temporary flat rate method" on Form T777S - Statement of Employment Expenses for Working at Home Due to COVID-19 to enter these amounts and attach it to your 2020 income tax return.
What is Form T777S
-
Claim the deduction on your tax return
Enter the amount from Line 9939 on Form T777S to Line 22900 "Other employment expenses" on your 2020 income tax return.
Form T777S must be filed with your tax return.
Review of your claim
Each year, CRA conducts a number of review activities to maintain the integrity of, and the Canadian public's confidence in, the Canadian tax system. The CRA may review your claim to validate your eligibility.
Detailed method
This method allows you to claim the actual amounts you paid, supported by documents. You must complete Form T777S or Form T777 and get a completed and signed Form T2200S or Form T2200 from your employer.
Form T777S: Option 1 of 2
Use "Option 2 – Detailed method" on Form T777S to claim your home office expenses if you are claiming the actual amount paid as a result of working from home and are not claiming any other employment expenses on line 22900.
Form T777: Option 2 of 2
You must use Form T777 to claim your home office expenses if you are:
- claiming other employment expenses on line 22900 (for example, motor vehicle expenses), as well as home (work-space-in-the-home, office supplies and certain phone expenses)
- filing a 2019 or prior year tax return
Steps
-
Confirm you are eligible
You must meet the eligibility criteria - Detailed method to claim your home office expenses.
-
Fill in the applicable form
Tip: Use the calculator to determine the employment-use amount to enter on Form T777S or Form T777.
Form for those working from home due to the COVID-19 pandemic who are only claiming home office expenses: Option 1 of 2
Complete Form T777S - Statement of Employment Expenses for Working at Home Due to COVID-19, if you are only claiming home office expenses on line 22900.
Form for those required to work from home or those working from home due to the COVID-19 pandemic who are claiming additional employment expenses: Option 2 of 2
Complete Form T777 - Statement of Employment Expenses if you are claiming additional expenses on line 22900 like motor vehicle, accounting fees, tools, and parking.
-
Claim the deduction on your tax return
Enter the amount from Line 9368 on Form T777S or Form T777 on Line 22900 "Other employment expenses" on your tax return.
Form T777S or Form T777 must be filed with your tax return. Do not include your supporting documents.
Form T2200S or Form T2200 is kept by you and is not included with your tax return.
Who can sign Form T2200 and Form T2200S
Form T2200 and Form T2200S must be signed by your employer. It is up to your employer to determine who is authorized to sign these forms.
-
Keep your records
Keep the following records for six years:
- Declaration of Conditions of Employment (Form T2200S or Form T2200)
- any receipts, supporting documents and records
Review of your claim
Each year, CRA conducts a number of review activities to maintain the integrity of, and the Canadian public's confidence in, the Canadian tax system. The CRA may review your claim to validate your eligibility.
- Date modified: