Canadians who work from home will be able to claim up to $400 on their taxes

Simplifying the Home Office Expense Deduction in pandemic recovery plan, released yesterday.

If you’ve been working in a home office during the pandemic, you could claim up to $400 on your 2020 income tax return.

In the fall economic statement, published yesterday by the Canadian government, officials noted that millions of residents are unexpectedly working from home because of COVID-19.

“They are turning their bedrooms, basements and kitchens into offices, and taking on increased household expenses to do their jobs,” said the report.

“Canadians working from home can already deduct certain home office expenses for tax purposes, but first-time claimants may not be familiar with the rules and the claim process imposes an administrative burden on employers who are already dealing with the broader impacts of the pandemic and have to fill out additional information for their employees who qualify.”

So, in order to simplify the process and make sure people can make the claim, the CRA will allow employees with modest expenses to claim up to $400.

The amount is based on the amount of time working from home, without the need to track detailed expenses.
Additionally, the government said that the CRA will generally not request that people provide a signed form from their employers.

Further details are expected to be communicated by the CRA in the coming weeks.