COVID-19 Tax Considerations for Home Office Expenses
2020 and the COVID-19 pandemic has had numerous impacts on business and its employees for the past nine months. For some businesses and their employees, working from home or remote working became a new reality.
On December 15, 2020, CRA announced administrative changes to the employee’s deduction for home office expenses, including:
1. Shorter qualifying period if working from home due to Covid-19
Employees who worked from home more than 50% of the time over a period of a least four consecutive weeks in 2020 due to COVID-19 can claim the home office expenses deduction for 2020.
2. Simplified forms for employees working from home due to Covid-19
T2200S Declaration of Conditions of Employment for Working at Home Due to COVID-19
T777S Statement of Employment Expenses for Working at Home Due to COVID-19
3. Temporary flat rate for 2020 for employees working from home due to Covid-19
Temporary flat rate of $2 for each day they worked at home in the new qualifying period, plus any other days they worked from home in 2020 due to COVID-19 up to a maximum of $400.
Under this new method, employees will not have to get Form T2200 or Form T2200S completed and signed by their employer.
4. Were you required to work from home?
If you were not required to work from home, but your employer provided you with the choice to work at home because of the COVID-19 pandemic, then the CRA will consider you to have worked from home due to COVID-19.
5. New eligible expense
Home internet access fees can now be claimed.
Further details on home office expenses for employees are available on CRA website here.
For any questions specific to eligible COVID-19 claims or other tax-related items, contact any member of our Tax Team.
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