Thankfully, the Canada Revenue Agency (CRA) has made it easy for employees to claim home office expenses if you spent more than half of your working hours at home for at least four consecutive weeks in 2020 due to COVID-19. Here are the options available to claim a deduction.
With the temporary flat-rate method, you can claim a deduction of $2 for each day you worked at home, to a $400 maximum. It’s as simple as completing one line on form T777 Short (form TP-59.S-V in Quebec). You don’t need to keep track of home office expenses or ask your employer to submit a form.
If you’re eligible for more than the $400 deduction, you can use the detailed method on form T777 Short (form TP-59.S-V in Quebec). Expenses include office supplies, utilities, internet, maintenance and cell phone charges related to work. You can use the CRA’s calculator to see if you’ll come out ahead. Go to canada.ca, search “home office expenses for employees” and choose “calculate your expenses.” Note that you need to keep supporting receipts and records, and your employer must complete form T2200S (form TP-64.3-V in Quebec).
You can use the usual T777 and T2200 forms (TP-59-V and TP-64.3-V in Quebec) if you’re claiming expenses unrelated to a home office, such as motor vehicle and travel expenses. These forms also apply to employees required to work from home before the pandemic.
This material was prepared for and published on behalf of your financial advisor and is intended only for clients resident in the jurisdiction(s) where their representative is registered. This material is provided solely for informational and educational purposes and is not to be construed as an offer or solicitation for the sale or purchase of any securities or as providing individual investment, tax or legal advice. Consult your professional advisor(s) prior to acting on the basis of this material. Insurance products are available through advisors registered with applicable insurance regulators. Individual equities are available only through representatives of Assante Capital Management Ltd. In considering any particular investment, please remember that past performance is no guarantee of future performance. Although this material has been compiled from sources believed to be reliable, we cannot guarantee its accuracy or completeness. All opinions expressed and data provided herein are subject to change without notice. Neither CI Assante Wealth Management or its dealer subsidiaries Assante Capital Management Ltd. and Assante Financial Management Ltd., nor their affiliates or their respective officers, directors, employees or advisors are responsible in any way for any damages or losses of any kind whatsoever in respect of the use of this material. CI Assante Wealth Management is a registered business name of Assante Wealth Management (Canada) Ltd. Assante Capital Management Ltd. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. Assante Financial Management Ltd. is a member of the Mutual Fund Dealers Association of Canada and the MFDA Investor Protection Corporation (excluding Quebec). © 2021 CI Assante Wealth Management. All rights reserved.