Home Office Claim Updates

On January 18, 2022, CRA released the 2021 versions of forms T2200S Declaration of Conditions of Employment for Working at Home Due to COVID-19 – Canada.ca and T777S Statement of Employment Expenses for Working at Home Due to COVID-19 – Canada.ca.

Updates include:

  • The temporary flat rate method is now available through 2022. The maximum claim under the temporary flat rate method remains $2 per day. For 2021 and 2022 the cap has been raised to $500.
  • The eligibility criteria for the temporary flat-rate method and simplified detailed method will remain substantially the same for 2021.
  • Instructions have been given such that employers can create their own T2200s, although strict guidelines must be met.
  • This FAQ was added:

If my spouse and I both worked from home and both meet the eligibility criteria, how do we each calculate our work-space-in-the-home expenses using the detailed method?

You have to first determine the eligible home office expenses you can claim and then calculate the total employment-use amount of those expenses:

  1. Expenses you can claim

The CRA generally allows some flexibility in letting you and your spouse decide how to share eligible work-space-in-the-home expenses, as long as you meet all of these requirements:

o    you or your spouse must have paid the expenses yourselves

o    you reduce the amount of any expense by the amount of any reimbursement that either you or your spouse received for the expense

o    the expense is claimed as a deduction only once

For example, John and Jane are common-law partners. They paid $1,400 monthly for rent. Either John or Jane (but not both) can claim the full $1,400, or they can share the total of $1,400 as they want (50/50, 70/30, 40/60, etc.).

  1. Employment-use amount of those expenses

This is determined by multiplying the eligible expenses from 1) by your employment-use percentage of the work space. Your employment-use percentage of the work space depends on whether you and your spouse used a single work space or worked in different work spaces in the home. For more information, see Determine your work space use – Home office expenses for employees – Canada.ca

Couple working from home on laptops