During the pandemic, most Canadians had to transition from working at an office to their home. Now that things are “back to normal” a lot of those same Canadians are choosing to stay working from home. According to CRA, employees choosing to work from home can still claim their expenses.
Typically, an employee must be required to work from home to claim a deduction for home office expenses. However, for 2023, if an employee decided to enter a formal telework arrangement with their employer they would be considered to have been required to work from home. CRA has also approved that the agreement can be either written or a verbal agreement and it does not need to be a part of an employment contract.
For 2023 CRA has issued an updated T2200. Employees need a completed and signed copy obtained from their employer to claim expenses under the “detailed” method (the only method available for 2023).
As stated in the detailed method, an employee who works from home more than 50% of the time for at least four executive weeks in a year can claim eligible expenses.
An employee may also become eligible if they only use their at-home workspace to earn employment income and they do so “regularly and continuously for in-person meetings with clients, customers, or other people” for work purposes, the CRA indicated.
“Eligible expenses include utilities, home internet, rent, maintenance, and minor repair costs, and certain office supplies, but not mortgage payments. Only commission-based employees can deduct property taxes and home insurance.” – Employees working from home by choice can claim expenses, CRA says, written by Rudy Mezzetta.
To claim these expenses, employees must complete Form T777: Statement of Employment Expenses and keep their receipts, documents, and related records. If the CRA asks, then you may need the T2200 with your return as well.
If you or someone you know currently works from home by choice, be sure they are aware of this added tax relief – every little bit helps!
Have a great weekend,
Tracey & Paige
Sources: https://www.advisor.ca/tax/tax-news/employees-working-from-home-by-choice-can-claim-expenses-cra-says/?utm_source=ADVR_NL&utm_medium=email&utm_campaign=AM_Bulletin&hash=1fdd4f3b72150cb75f61a4b6141cc698
Photo by Cristian Tarzi on Unsplash
Products or services related to investments, investment recommendations, financial planning, retirement planning, and investment reviews are provided through our mutual fund dealer Security Financial Services and Investment Corp. 4665 Yonge Street, Suite 309, Toronto, ON M2N 0B4 t 416.964.0440