OTTAWA – The Canada Revenue Agency says it is introducing a simplified process to claim up to $400 in office expenses for Canadians working from home during the COVID-19 pandemic.
The process will allow employees to claim these expenses as deductions on their personal income tax return for the 2020 tax year.
The temporary flat-rate method will allow eligible employees to claim a deduction of $2 for each day they worked at home due to COVID-19, up to a maximum of $400.
Under this new method, employees will not have to get Form T2200 or Form T2200S completed and signed by their employer.
“The temporary flat rate method and the new user-friendly calculator will make it easier for more Canadians to claim the deductions,” said National Revenue Minister Diane Lebouthillier in a statement.
The government says a shorter qualifying period will ensure that more employees can claim the deduction than would otherwise have been possible under long-standing practice.
Statistics Canada says 2.4 million Canadians who do not normally work from home did so in October.
The Canadian Payroll Association says that waiving employees from obtaining employer-signed forms will save employers a total of more than $194 million.
This report by The Canadian Press was first published Dec. 15, 2020.