A much-loved deduction that was introduced on the 2020 tax return was the Working From Home Deduction for employees working from home due to the pandemic.
Good news! The deduction is in place for the 2021 and 2022 tax years. There are two ways to claim the deduction:
Temporary Flat Method
• Available for employees who worked from home at least 50% of their time in a four-week consecutive period
• Employees can claim $2/day to a maximum of 250 days ($500 maximum claim)
• No need to keep receipts or calculate the area of your workspace within your home
Detailed Method
• Need to keep track of receipts for eligible expenses (utilities, internet access, rent, and for commissioned employees, property taxes and insurance)
• Need to calculate your workspace as a percentage of your home and track the time spent working
• Must have a completed and signed Form T2200S from your employer
When you work through the workspace and time calculations, most employees working from home will be better off using the Temporary Flat Method, but you can check if it will be beneficial in your circumstances here.
If you are claiming any other employment expenses (vehicle, meals, supplies, etc.) you must claim your use-of-home expenses on the traditional claim form and have a completed and signed Form T2200 from your employer.
This article was originally published in Southwestern Tax Service's February newsletter: https://conta.cc/3rGqCdH
Many of our tax professionals are also working from home but wherever they are working, they can help you choose which method is best for you:
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