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Frequently asked questions – Home office expenses for employees

Frequently asked questions – Home office expenses for employees

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Is this a credit or a deduction?

Home office expenses can be claimed as a deduction on an employee's personal income tax return. A deduction reduces the amount of income they pay tax on, so it reduces their overall income tax liability.

What if you chose to work from home?

If you were not required to work from home, but your employer provided you with the choice to work from home because of the COVID-19 pandemic, then the CRA will consider you to have worked from home due to COVID-19.

You must still meet the other eligibility criteria – Home office expenses for employees – Who can claim to claim home office expenses.

How do I claim a deduction for my home office expenses in 2022?

If you meet the eligibility criteria – Home office expenses for employees – Who can claim, there are two options to calculate your deduction for home office expenses for the 2020, 2021, and 2022 tax years:

For more information refer to compare the claim methods. If you use the detailed method, the CRA has developed a calculator designed specifically to assist with the calculation of your home office expenses.

Temporary flat rate method

What is the temporary flat rate method?

If you worked more than 50% of the time from home for a period of at least four consecutive weeks in the year due to COVID-19, you can claim $2 for each day that you worked at home during that period, plus any other days you worked at home in the year due to COVID-19. The temporary flat rate method can be used in 2020, 2021, and 2022, and you can claim up to a maximum of $400 in 2020 and $500 in 2021 and in 2022.

Will the temporary flat rate method be extended past 2022?

The temporary flat rate method can be used in the 2020, 2021, and 2022 tax years.

Is the deduction calculated using the temporary flat rate method by individual or by household?

Each employee working from home who has paid home office expenses and meets the eligibility criteria can use the temporary flat rate method to calculate their deduction for home office expenses.

What types of expenses are covered by the temporary flat rate method?

The temporary flat rate method is used to claim home office expenses that you paid like rent, electricity and home internet access fees, as well as office supplies like pens and paper, and cell phone minutes.

If you use the temporary flat rate method, you cannot claim any other employment expenses (for example motor vehicle expenses).

What if you don't work the full day at home?

You can still claim the $2 a day, if you meet the eligibility criteria – Home office expenses for employees – Temporary flat rate method.

What if you work a day of overtime at home?

You can claim the $2 a day, if you meet the eligibility criteria – Home office expenses for employees – Temporary flat rate method.

What if you are on leave?

Paid leave and unpaid leave are not counted in determining:

If my employer has reimbursed me for some of my home office expenses, can I still use the temporary flat rate method?

Yes, you can still use the temporary flat rate method, if you meet the eligibility criteria – Home office expenses for employees – Temporary flat rate method.

Detailed method

What is Form T2200 used for?

Form T2200, Declaration of Conditions of Employment, is a form your employer fills out to certify you were required to pay for your own employment expenses. Form T2200 is kept by you and is not included with your tax return.

What is Form T2200S used for?

Form T2200S, Declaration of Conditions of Employment for Working at Home Due to COVID-19, is a shorter version of Form T2200 that you get your employer to complete and sign if you worked from home in the year (2020, 2021, or 2022) due to the COVID-19 pandemic and are not using the temporary flat rate method. Your employer completes and signs this form to certify that you worked from home in the year (2020, 2021, or 2022) due to COVID-19 and had to pay your own home office expenses. Form T2200S 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.

What is Form T777 used for?

Form T777, Statement of Employment Expenses, is used to calculate the employee's allowable employment expenses. Form T777 must be filed with your tax return.

What is Form T777S used for?

Form T777S, Statement of Employment Expenses for Working at Home Due to COVID-19, is used to calculate your claim for home office expenses. Form T777S must be filed with your tax return.

If my employer has reimbursed me for some of my home office expenses, can I still use the detailed method?

Yes, you can still use the detailed method if you meet the eligibility criteriaHome office expenses for employees – Detailed method, but you cannot claim any expenses that were or will be reimbursed by your employer.

If my spouse and I both worked from home and both meet the eligibility criteria, how do we each calculate our work-space-in-the-home expenses using the detailed method?

You have to first determine the eligible home office expenses you can claim and then calculate the total employment-use amount of those expenses:

  1. Expenses you can claim

    The CRA generally allows some flexibility in letting you and your spouse decide how to share eligible work-space-in-the-home expenses, as long as you meet all of these requirements:

    • you or your spouse must have paid the expenses yourselves
    • you reduce the amount of any expense by the amount of any reimbursement that either you or your spouse received for the expense
    • the expense is claimed as a deduction only once

    For example, John and Jane are common-law partners. They paid $1,400 monthly for rent. Either John or Jane (but not both) can claim the full $1,400, or they can share the total of $1,400 as they want (50/50, 70/30, 40/60, etc.).

  2. Employment-use amount of those expenses

    This is determined by multiplying the eligible expenses from 1) by your employment-use percentage of the work space. Your employment-use percentage of the work space depends on whether you and your spouse used a single work space or worked in different work spaces in the home. For more information, see Determine your work space use.

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