2021 March Money Tips

Happy March! Spring is almost here, which also means that tax season is here. This month's tip is about claiming Home Office Expenses for Employees.

Since many of us worked from home in 2020 (probably still working from home now), many of us may be eligible for Home Office Expenses for Employees deductions. You may use a Temporary Flat Rate or detailed method. 

Eligibility criteria is as follows:
Each employee working from home who meets the eligibility criteria can use the temporary flat rate method to calculate their deduction for home office expenses.

To use this method to claim the home office expenses you paid, you must meet all of the following conditions:
- You worked from home in 2020 due to the COVID-19 pandemic
- You worked more than 50% of the time from home for a period of at least four consecutive weeks in 2020
- You are only claiming home office expenses and are not claiming any other employment expenses
- Your employer did not reimburse you for all of your home office expenses

For the Temporary Flat Rate method, you don't need any T2200 or T2200S form from your employer. You can claim:
# of days you worked from home within the period (maximum 200)
times $2 (temporary flat rate amount)
equals Amount of your claim (to a maximum of $400)

Example: 200 days * $2/day = $400
Don't forget to calculate the number of eligible days, don't just use 200 days as a default.

That's all for now. Happy Spring! :)      

Source: 
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-229-other-employment-expenses/work-space-home-expenses/who-claim/temporary-flat-rate.html


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