2020 Home Office Expenses Posted on Dec 20, 2020

New temporary (only for 2020) simplified flat rate method:

1. Employee doesn’t need to provide backup receipts or calculate the size of the work space
2. No need to obtain a signed form from an employer
3. Expense amount that can claim as employment expense is $2 per day worked from home to a maximum of 200 days ($400.00). This means that if there are about 21-22 working days in a month, an employee had to work nearly 10 months from home to get the maximum deductible amount.
4. Full-time or part-time working days count towards the deduction. Days off, vacation days, sick days or leaves of absence, do not count.

Detailed method – new twist:

Sometimes, the deduction is larger when claim actual expenses incurred. To be eligible ALL the below criteria need to be met:
1. Worked from home in 2020 due to COVID or the employer required the employee to work from home.
2. Worked from home more than 50% of the time for at least 4 CONSECUTIVE weeks.
3. Employer provided a signed “declaration of conditions of employment form” (link to the form below)
4. Important – can only deduct expenses that are used DIRECTLY to work from home. Here is CRA’s summary of eligible vs. non eligible expenses.

Eligible Expenses Non-eligible Expenses
rent paid Capital cost allowance
Electricity, water, heat or utilities portion of condo fees mortgage interest
Maintenance and minor repairs (light bulbs, paint, cleaning supplies) mortgage principle payments
Home internet access fees capital home maintenance expenses - replacing windows, flooring, furnace etc
Office supplies (pens, folders, toner, ink, sticky notes etc.) office equipment (calculator, laptop case, printer etc)
Employment use of basic cell phone basic rate for landline
Long distance calls for employment purposes cell phone connection or license fee
Employees who earn commission income can also claim: Purchase of laptop, cell phone, computer, tablet etc.
property taxes Computer accessories
home insurance Electronics: speakers, voice assistant, television etc.
computer, tablet, laptop, fax machine that reasonably relate to earning commission income Furniture


















CRA calculator:

CRA added a convenient calculator to estimate the deduction. Here is a link: Calculate your expenses - Home office expenses for employees -


To be signed by an employer: T2200S – Declaration of Conditions of Employment for working from home due to COVID: T2200S Declaration of Conditions of Employment for Working at Home Due to COVID-19 -

To be completed by a tax preparer and submitted with the tax return: T777S – Statement of Employment Expenses for Working at Home due to COVID: T777S Statement of Employment Expenses for Working at Home Due to COVID-19 -