CRA Releases Improved Guidelines For Employee Home Office Expense Deductions

Following up on the 2020 Fall Economic Statement, the CRA has further responded today to ongoing requests from employees, employers and the tax community for guidance on the employee work-space-in-the-home deduction availability and compliance measures (T2200 form) as COVID-19 restrictions remain in place. As anticipated in our previous publication, the CRA appears to understand the administrative burden the current T2200 requirement would have on employers for 2020 and has worked to provide an alternative approach. BLG has been in discussion with CRA officials and received information expected to be helpful to both employers and employees.

What's new?

In the 2020 Fall Economic Statement CRA announced that a simplified Home Office Expense Deduction will be offered, in addition to an improved detailed deduction. Generally, employees working from home in 2020 due to the COVID-19 pandemic with modest expenses will have an ability to claim up to $400 in expenses on