As a result of the unprecedented challenges due to COVID-19, the Canada Revenue Agency (CRA) has introduced two methods that are available to employees in order to claim the deduction for home office expenses.
Under existing rules, employees are eligible to claim a deduction for home office expenses for the period they worked from home, if they meet the following criteria:
- The employee worked more than 50% of the time from home while performing the duties of employment; or
- The work space is both used exclusively during the period to which the deductible expenses relate for the purpose of earning income from employment and is used on a regular and continuous basis for meeting customers or other persons in the ordinary course of performing the duties of employment.
The employer must also certify on form T2200 that the employee was required to maintain the home office and that the employee was not entitled to be reimbursed for the costs.