The Canada Revenue Office (CRA) has simplified the way employees can claim the home office expenses deduction and expanded eligibility for the 2020 tax year.

On December 15, 2020, the CRA said that employees who worked from home more than 50 percent of the time over a period of at least four consecutive weeks in 2020 due to COVID-19 will now be eligible to claim the home office expenses deduction for 2020. The use of a shorter qualifying period will mean that more employees can claim the deduction than would otherwise have been possible under longstanding practice.

The CRA also said that a new temporary flat rate method will allow eligible employees to claim a deduction of CAD2 for each day they worked at home in that period, plus any other days they worked from home in 2020 due to COVID-19, up to a maximum of CAD400. If using this method, employees will not be required to get Form T2200 or Form T2200S completed and signed by their employer. They will not be required to calculate the size of their workspace.

For more information on this, and other topical international tax matters, please visit: https://www.cchgroup.com/roles/corporations/international-solutions/research/global-tax-weekly-a-closer-look

Canada