While employees who primarily worked from home have always been able to claim work expenses, the Canada Revenue Agency has streamlined the process. You can apply one of two ways: a temporary flat-rate method (extended for the 2021 and 2022 tax years) or the traditional detailed method.
To qualify, you must have worked at home more than 50 percent of the time in a four-consecutive week period in 2021, and the same stipulations apply for next year?s tax season, says Janet Gray, an Ottawa-based financial planner at Money Coaches Canada.
How does the temporary flat-rate method work"
The flat rate is $2 for each day you worked at home due to COVID-19 to a maximum of $500 or 250 working days, an increase from $400 and 200 working days in 2020. It doesn?t matter if the days you worked are full time or part time, and they don?t need to be consecutive days. You just simply claim the appropriate amount and submit form T777s, a statement of employment expenses, with your income taxes.
(Note that days off for vacation or illness do not count in your work calculations.)
With this straightforward option, you don?t have to keep receipts, calculate the workspace allotment in your home, or get a form signed by your employer. One caveat: You cannot claim any other employment expenses.
How does the detailed method work"
As the name implies, this method is a more involved process. To apply this way, besides filling out T777s, you must also have a completed and signed form T2200s fro...