In 2020, many Canadians had to hastily set up a home office and get used to working in their pajamas, and this means that the way you do your taxes may be different this year. Of course you still have plenty of time to pay the taxman but if you’re working from home, it’s a good idea to have an idea of how this will impact your tax return.
If you’re self-employed, nothing’s changed and you need to file your income tax return as usual. If you’ve been working from home because of the pandemic, just for this tax year, the Canada Revenue Agency – or CRA – has introduced a temporary flat rate method where you can claim $2 a day, up to $400, if you meet certain criteria. Otherwise, you need to use the detailed method. First, you need your employer to sign a T2200S form to show that you worked from home and had to pay your own home office expenses. Before filing, you should check with the CRA for the latest information but for now, here’s what you can and cannot claim from your work-from-home office if you use the detailed method.