For instance, if you had to section off a part of your house to make an office, but had to paint or fix flooring in your house that extended to the area of your office, you could claim that portion of repairs. You can also include things like minor repairs or renovations made to your home to designate a workable office space. The CRA recognizes the above lists as legitimate expenses related to running a home office or home business and a portion of those could be deducted at tax-filing time. Home Insurance (only employees and self-employed who work on commission can claim this).Property taxes (only employees and self-employed who work on commission can claim this).Mortgage interest (only self-employed can claim this).Once you meet the eligibility criteria as an employee, you can claim a portion of the following expenses:Īs a self-employed person, consultant, or freelancer you can claim the following:
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If you are audited by the CRA and found to be claiming a false expense deduction on your income tax filing you will have to pay that money back plus penalties. Audits are intended to ensure taxpayers are fulfilling their tax duties. You don’t need to submit the T2200 form when you file your yearly taxes but you do need to keep it in your files in case the CRA decides to audityou. For example, if your employer says we are offering you a $100 a month allowance to cover your home office expenses on top of your regular salary pay, you would not require a T2200 form and would not be eligible to claim your expenses at tax time. You would need a T2200 form only if your employer isn't already paying you an allowance for your home expenses through your regular paychecks. Your employer isn't already reimbursing you for those expenses.Īs long as your employer agrees this is a requirement of the job you can request that they fill out a T2200 (Declaration of Conditions of Employment) form.You meet with clients (face-to-face) there on a regular, continual basis.
For Non-COVID Tax YearsĪccording to the CRA, you can file for a tax deduction on a home office if your employer requires you to work from home for more than 50% of the year. NOTE: If you think you will be working from home more frequently in the 2021 tax year due to COVID-19 you should start collecting and keeping a file of all receipts for the expenses accumulated. This method can only be used for the 2020 tax year. This means multiple people working from the same home can each make a claim.
A comprehensive list of eligible home office expenses has also been created.Įach individual working from home who meets all the eligibility criteria can use the temporary flat rate method to calculate their deduction for home office expenses. The maximum you can claim using the new temporary flat rate method is $400 (200 working days) per individual. You can claim $2 for each day you worked from home during that period plus any additional days you worked at home in 2020 due to the COVID-19 pandemic. You are eligible to use this new method 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. The new temporary flat rate method simplifies your claim for home office expenses. If you are working from home due to COVID-19 you may be eligible for the CRA’s new temporary flat rate method to simplify claiming the deduction for home office expenses for the 2020 tax year.
A home office can help you get your business off the ground and the Canada Revenue Agency (CRA) recognizes this by offering generous deductions you can claim at tax time. If you want to start a new business, become a consultant, or be a freelancer, working from home is a cheaper way to cut overhead expenses like leasing an office space.
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