On December 15, 2020, the CRA released details on new methods to claim home office expenses.
The update includes:
-New temporary flat rate method
-New options to claim the actual amounts you paid
-New eligible expenses
NEW TEMPORARY FLAT RATE METHOD
The new temporary flat rate method simplifies your claim for home office expenses. 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. 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. The maximum you can claim using the new temporary flat rate method is $400 (200 working days) per individual. Since this is a deduction in your taxes the value of $400 in Ontario at 53.53% is $214.12 and look at the work involved.
Eligibility
Each individual working from home who meets the eligibility criteria can use the temporary flat rate method to calculate their deduction for home office expenses. This means multiple people working from the same home can each make a claim.
This method can only be used for the 2020 tax year.
or
NEW DETAILED METHOD
You are eligible to claim a deduction for home office expenses for the period you worked from home, if you meet all of the criteria:
you worked from home in 2020 due to the COVID-19 pandemic or your employer required you to work from home
you worked more than 50% of the time from home for a period of at least four consecutive weeks in 2020
have a completed and signed Form T2200S or Form T2200 from your employer
the expenses are used directly in your work during the period - see listing below.
Changes to the process
The CRA:
created a simplified Form T2200S and Form T777S
-created a calculator to help you claim the home office expense deduction that you are entitled to claim
-will accept an electronic signature on the Form T2200S and Form T2200 to reduce the necessity for employees and employers to meet in person (applies to the 2020 tax year only)
In addition to your home office costs, supplies can be claimed as well.
NEW ELIGIBLE EXPENSES FOR SUPPLIES AT HOME
The CRA has released a 59 item list of items that individuals may have been considering deducting, which indicates what specifically would be deductible, and what would not. The eligibility list is broken down by destructibility for commissioned sales persons and employees.
Common home office supplies
Can it be claimed??
Blue light eye glasses
No | Salaried employees No | Commissioned employees
Briefcase
No | Salaried employees No | Commissioned employees
Calculator
No | Salaried employees No | Commissioned employees
Capital cost allowance
No | Salaried employees No | Commissioned employees
Chair
No | Salaried employees No | Commissioned employees
Charging or connecting cables
No | Salaried employees No | Commissioned employees
Coffee supplies
No | Salaried employees No | Commissioned employees
Computer, laptop, or tablet - lease
No | Salaried employees Yes | Commissioned employees
Computer, laptop, or tablet - purchase
No | Salaried employees No | Commissioned employees
Computer, laptop, or tablet - cases or bag
No | Salaried employees No | Commissioned employees
Computer, laptop, or tablet - protection plans
No | Salaried employees No | Commissioned employees
Computer monitor
No | Salaried employees No | Commissioned employees
Computer mouse
No | Salaried employees No | Commissioned employees
Desk
No | Salaried employees No | Commissioned employees
Electrical room heater or fan
No | Salaried employees No | Commissioned employees
Envelopes
Yes | Salaried employees Yes | Commissioned employees
Ergonomic examination
No | Salaried employees No | Commissioned employees
Ergonomic foot rest
No | Salaried employees No | Commissioned employees
External hardrive
No | Salaried employees No | Commissioned employees
Fax machine - lease
No | Salaried employees Yes | Commissioned employees
Fax machine - purchase
No | Salaried employees No | Commissioned employees
Folders
Yes | Salaried employees Yes | Commissioned employees
Garbage or recycle bins
No | Salaried employees No | Commissioned employees
Graphing equipment
No | Salaried employees No | Commissioned employees
Headset or headphones
No | Salaried employees No | Commissioned employees
Highlighters
Yes | Salaried employees Yes | Commissioned employees
House-plants
No | Salaried employees No | Commissioned employees
Ink cartridges
Yes | Salaried employees Yes | Commissioned employees
Keyboard or wireless keyboard
No | Salaried employees No | Commissioned employees
Lamps
No | Salaried employees No | Commissioned employees
Laptop stand
No | Salaried employees No | Commissioned employees
Microphone
No | Salaried employees No | Commissioned employees
Mouse pad
No | Salaried employees No | Commissioned employees
Note-books
Yes | Salaried employees Yes | Commissioned employees
Online subscriptions
No | Salaried employees No | Commissioned employees
Paper clips or binder clips
Yes | Salaried employees Yes | Commissioned employees
Paper shredder
No | Salaried employees No | Commissioned employees
Pens or pencils
Yes | Salaried employees Yes | Commissioned employees
Power bar or surge protector
No | Salaried employees No | Commissioned employees
Printer
No | Salaried employees No | Commissioned employees
Printer paper
Yes | Salaried employees Yes | Commissioned employees
Protective mat for office floor
No | Salaried employees No | Commissioned employees
Router - purchase
No | Salaried employees No | Commissioned employees
Safe, lock box, or lock
No | Salaried employees No | Commissioned employees
Scanner
* No | Salaried employees No | Commissioned employees
Smart speaker
No | Salaried employees No | Commissioned employees
Software and Speakers
No | Salaried employees No | Commissioned employees
No | Salaried employees No | Commissioned employees
Specialty paper (for example: graph paper, tracing paper)
Yes | Salaried employees Yes | Commissioned employees
Specialized printer (for example: large scale, high resolution)
No | Salaried employees No | Commissioned employees
Stamps or postage
Yes | Salaried employees Yes | Commissioned employees
Stationery items
Yes | Salaried employees Yes | Commissioned employees
Sticky notes
Yes | Salaried employees Yes | Commissioned employees
Storage containers or cabinets
No | Salaried employees No | Commissioned employees
Television
No | Salaried employees No | Commissioned employees
Toner
Yes | Salaried employees Yes | Commissioned employees
USB drive
No | Salaried employees No | Commissioned employees
Voice assistant
No | Salaried employees No | Commissioned employees
Webcam
No | Salaried employees No | Commissioned employees
Explanatory landing page
New T2200S
New Form T777S
Conclusion;
Thus, lots of rule changes for working at home with minimal value once you consider your time to do the following; obtain the T2200S, track your costs, complete forms, and then apply your marginal tax rate.
If you have any questions or comments, please email peter@taxhome.net or call 905-898-3355.
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