Can Home Office Expenses Be Deducted If You're Working From Home During COVID-19?

Employees working from home during the COVID-19 pandemic may be wondering whether additional costs they incur during this time will be deductible for income tax purposes.

When it comes to deducting home office expenses for income tax purposes, there are three approaches outlined in this article:

1. an employee may be able to deduct these expenses from their own taxable employment income;
2. an employer can provide their employees with home office allowance; and
3. an employer can reimburse employees for any actual costs incurred by the employee relating to home office expenses.

Deducting Home Office Expenses

Employment expenses, such as those relating to a home office, can sometimes be claimed as a deduction on your personal income tax return. Whether the deduction can be claimed depends on a number of conditions. In addition, no deduction can be claimed if the expense was reimbursed by the employer.