The following is an extract from a recent publication by the National Payroll Institute.
For the 2022 tax year, the Canada Revenue Agency (CRA) has extended the temporary simplified flat rate method for deducting home office expenses for employees who worked from home due to COVID-19 for more than 50% of the time for at least four consecutive weeks in the year.
The simplified flat rate method means that employees will be able to claim an amount of $2 for each day worked from home, up to a maximum deduction of $500 (for 250 working days). This simplified flat rate method does not require employees to obtain completed and signed T2200 or T2200S forms from their employer. No calculation of the size of the home workspace or supporting documents is needed to validate a simplified claim.
- Work days include any day an employee performed work, from their home, for the employer. No minimum hours are attached to this, and both full-time and part-time employees may count any day they performed work for the employer.
- Non-work days, which need to be excluded, are weekends, statutory holidays, vacation days, sick days and any other leaves of absence.
For most employees, this simplified flat rate method ($2 for each day worked from home) will provide the maximum deduction allowed without the detailed record-keeping usually required for home office deduction claims.
Expenses Exceeding $2 per Working Day
Depending on your circumstances, you may be eligible for deductions greater than the simplified method offers. This will require you to:
- Measure and total the size of your workspace
- Obtain the total size of all finished areas in your home (including your workspace)
- If using a common space in the home, determine the average weekly working hours; and
- Collect and maintain supporting documents for all of the expenses you can claim for the period(s) you worked from home
Get more details about this method here.
Revenu Quebec Requirements
For the 2022 tax year, Revenu Quebec (RQ) has also extended the temporary fixed-rate method for deducting home office expenses for employees who worked from home due to COVID-19 for more than 50% of the time for at least four consecutive weeks in the year.
Employees using this method of calculation of teleworking expenses must complete sections 1 and 2 of the TP-59.S, Expenses Related to Working Remotely Because of the COVID-19 Pandemic form and include it with their income tax return. They are not required to retain any supporting documents and can claim $2 for each day they teleworked at home in 2022 due to COVID-19, up to a maximum of $500.
For more detailed information and examples of calculating the work-from-home expenses, please download NPI’s 2022 Tax Year and Work from Home Expenses guide.
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