Normally, if you are an employee, you can deduct home office expenses only if:
- You carry on your employment duties primarily in your home office (basically meaning more than 50% of the time during the year); or
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You carry on those duties in your home office, which is used only for employment purposes during the year, and you regularly meet clients or customers there on a regular basis.
The home office expenses include things like supplies, minor repairs and maintenance, heat and utilities and rent (pro-rated based on the size of the home office).
Due to Covid-19, the CRA allows a “flat rate method” instead of the “regular method” described above, with no Form T2200 to be signed by the employer. Also no documents have to be kept.
The CRA flat rate method applies 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 the pandemic. In such case, you can claim $2 for each day you worked from home during that period and the rest of the year. The maximum amount that could be claimed was $400 in 2020. It has been increased to $500 for 2021 and 2022.