Home office expenses for employees – What you need to know for the 2023 tax-filing season

CRA SOURCE ARTICLE

The Canada Revenue Agency is currently updating its webpages and Form T2200 for the 2023 tax year. The updated form, which will be made available at the end of January 2024, along with other T1 related forms, will be easier to complete for employees who are only claiming a deduction for home office expenses.

Eligible employees who are looking to claim home office expenses for 2023 must use the detailed method. To do so, they need to have a completed Form T2200, Declaration of Conditions of Employment, reviewed and signed by their employer.

Who is eligible?

Employees who are required to work from home and meet other conditions are eligible to claim a deduction for home office expenses. This requirement does not have to be part of their employment contract and may be a written or verbal agreement.

How much to claim?

To help employees determine how much they can claim, they can use our calculator to calculate their eligible expenses. For more information, go to Expenses you can claim.

What about the temporary flat rate method?

In 2020, the Government of Canada introduced the temporary flat rate method to make it easier for employees who were forced to work from home due to the COVID-19 pandemic to claim home office expenses. Eligible employees who were only claiming a deduction for home office expenses could also use the detailed method if their employer completed and signed Form T2200S, Declaration of Conditions of Employment for Working at Home Due to COVID-19.

In 2021, since many Canadians were still required to work from home due to the pandemic, the temporary flat rate method was extended for the 2021 and 2022 tax years.

The temporary flat rate method does not apply to the 2023 tax year.