For the 2020 year, many employees were required to work from home due to the COVID-19 pandemic. Those employees generally had two deduction possibilities: using the flat method of claiming $2/day the individual worked from home, or doing a detailed calculation to claim the actual costs associated with working from home. While the first option was only a temporary relieving measure for the 2020 year, the Liberal election platform promised to extend access to this deduction for the 2021 and 2022 years. In the summer of 2021, CRA started to review these claims. A tax journalist from the Financial post, was one of the individuals selected for review. He discussed his experiences in an August 5, 2021 article (What you need to know if the CRA reviews your home office expense claims, Jamie Golombek). The author had used the detailed method to claim actual workspace in home expenses and was asked to provide
(among other items):
• an employer-signed Form T2200 and a Form T777 setting
out the claims;
• receipts and supporting documents, noting that credit
card statements, bank statements, or cheques would not
be sufficient support;
• for the workspace itself, the calculation details for the
percentage claimed, including space used for employment
and personal purposes and a copy of the floor plan of the
residence with the home office; and
• for cell phone expenses, CRA requested copies of the
mobile contract, monthly account summaries, proof of
payment, and a breakdown of the minutes and data used
to earn employment income.
Similar to other deductions against income, not all claims are
reviewed; nonetheless, taxpayers should be prepared to
provide this level and type of detailed support.
Also, in a Technical Interpretation, CRA confirmed that the
temporary flat-rate claim of $2 per day (maximum $400) can
be deducted by adult children living at home provided that
they contribute towards the payment of eligible home office
expenses and meet the relevant eligibility criteria.
Be prepared to provide detailed supporting
documentation for workspace in home claims made under
the detailed method.
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