Are you an employee and did you work from home in 2020?  If so you may be able to claim a tax credit relating to the home office use you incurred:

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Home Office Tax Credit

You are eligible to claim a deduction for home office expenses for the period you worked from home, if you meet all of the criteria:

  • you worked from home in 2020 due to the COVID-19 pandemic or your employer required you to work from home
  • you worked more than 50% of the time from home for a period of at least four consecutive weeks in 2020

For more detailed information, see CRA’s page on home office deductions here: CRA – Home Office Tax Credit

If you are eligible, you have the option to claim the detailed method using actual costs for the home or the simplified method at $2/day:

Simplified Method – Claim a credit of $2 per day you worked from home, up to a maximum of $400 for the year for each person.  This method does not require you to track actual expenses, measure square footage or obtain any documentation from your employer. You cannot use this method if you claim any other employment expenses (automobile use, supplies etc.)

Detailed Method – This method requires you to claim a percentage of the costs of your home.  The percentage is measured by the square footage of your office vs. the rest of the home and this method requires you to obtain form T2200 from your employer. For a detailed list of eligible costs visit CRA’s calculator below:

CRA – Home Office Expense Calculator

Not sure what you are eligible for? Contact us and we can review your situation together and pick which option works best for you.