With the COVID-19 pandemic forcing hundreds of thousands of Canadians to work from home, some of us have endured increased costs to do so. Whether you’ve had to buy new equipment (not reimbursed or paid for by your employer), or just had an increase in your utilities due to being locked down at home while working full time, there are tax breaks you may be eligible to claim.
Most self-employed individuals are well versed in the WFH (work from home) tax advantages, but if you’re an employee who is now working at home (whether just temporarily, or more permanently going forward), you may be able to claim some form of tax benefit.
Our current tax law in Canada says that employees can claim a deduction for certain home office expenses, but only if you meet one of the following two conditions:
- Your home is your principle place of work (meaning you are required to spend more than half your time working from home).
- You use a particular room exclusively for earning employment income and/or you meet customers there on a regular and continuous basis.
With COVID-19, many employers closed their doors, however many were able to allow their employees to work from home, so for many Canadian’s number one above applies.
What is required in this case is that your employer be willing to sign a Form T2200, specifically certifying that question 10 on the form is true; that you were required to work from home more than half the time during a specific period in the year.
Now, depending on your employer, and if/when you are permitted back to the office, you will need to prorate your expenses, so you are only deducting expenses that relate to that period of time. You would claim those expenses on Form T777. The onus is on you, the taxpayer, to ensure you claim no more than you should.
We encourage you to work with your accountant to ensure you allocate your expenses correctly on your tax return, and hope this brief outline gives you the insight needed to take further steps toward getting a tax break, if it’s available to you.