At a Glance
The CRA released a guideline on deducting the home office expense when filing your 2020 income tax return. Depending on the selected home office expense allocation method, the expense may be declared using Form T2200 for Declaration of Conditions of Employment. You can either use the flat rate method of CA$2 per workday or the detailed method of calculating the home office space alone against the whole house expense.
To download the form, click here.
Should you use Form T2200?
Form T2200 is used by employees who were forced to work from home due to Covid-19. However, as mentioned, the expense is deductible if an employee calculates and separates the cost of the home office space against the whole house having included additional expenses including electricity, internet, and water. Alternatively, you can use the direct method of billing your home office at the rate of CA$2 per workday to a maximum deductible amount of $400.
So if you’re working from home and have opted to use the detailed method (note that those using the flat rate (CA$2 per workday) method are not required to use Form T2200), you’re eligible to use Form T2200.
Additionally, the T2200 Form should also be used by people who normally work from home.