New Work-from-home Tax Claim Process


New Work-from-home Tax Claim Process

Working from home is no longer a luxury only a few have access to. Since the COVID-19 pandemic has begun, companies and organizations have had to reshape the office environment, with a majority of the office workforce working from home.  With that transition, many employees have had to pay out of pocket for upgrades and technology.  The Canadian Federal Government has acknowledged this in it’s Fall Economic Statement, which was released on Nov. 30, and announced that it would make it easier for Canadians to claim expenses up to $400.  

4.8.3 Simplifying the Home Office Expense Deduction: To simplify the process for both taxpayers and businesses, the CRA will allow employees working from home in 2020 due to COVID-19 with modest expenses to claim up to $400, based on the amount of time working from home, without the need to track detailed expenses, and will generally not request that people provide a signed form from their employers. This measure will help taxpayers access deductions they are entitled to receive and simplify the tax filing process. Further detail will be communicated by the CRA in the coming weeks. For more information visit the Fall Economic Statement 2020: Supporting Canadians and Fighting COVID-19

What Do I Need From My Employer?

Based on the information provided regarding the Simplifying the Home Office Expense Deduction you do not require any additional paperwork or documents such as the T2200 for working from home due to COVID.  Note this is subject to change and you should always refer to the CRA website for up to date tax information.  

What Can I Claim?

The Canadian Federal government has not clearly outlined if there are specifics just yet. Although they have indicated, there will be more information to come.  

How Do I Claim The Deduction?

The process has yet to be outlined, but as the time closes for 2020, the Federal Government should release an update.  From what they have said so far in the economic statement “this measure will help taxpayers access deductions they are entitled to receive and simplify the tax filing process.” It is recommended you speak with your accountant or refer to the CRA website during tax time. 

In Closing

As more information is provided we will do our best to keep you informed. We highly recommend you refer to these websites and always speak with a tax professional when it comes to deductions and tax assistance.

If you’re looking for information about how you can use your payroll tools to accomplish these items reach out to us today to learn more.

Anna McNally

About The Author

Anna McNally

Anna is an experienced Payroll Certified Practitioner and is a volunteer with the Canadian Payroll Association as a Subject Matter Expert.  She is a certified Sage 300 ERP consultant with fifteen years’ industry experience. She has implemented over 100 ERP systems. Before consulting and project management, Anna held accounting positions across various industries and brought this experience to her understanding of customer requirements. Anna is certified in Sage 300 ERP and Sage HRMS and an expert in Long-Term Care Home customizations.