Workspace In Home Deductions: What Qualifies And How To Claim

In March 2020, we saw an unprecedented number of Canadians suddenly and swiftly transition to working-from-home due to the COVID-19 pandemic. As we approach the six-month point in September, employers may start receiving more inquiries on whether their employees can claim tax deductions for working from home. These deductions are called Work Space in Home deductions and are found in section 8(13) of the Income Tax Act.

To qualify, the employer must provide a Declaration of Conditions of Employment (T2200 form) to the employee, confirming that the expenses and the home work space are conditions of the job. Next, the employee must meet one of the two tests:

1. the home work space is where the individual principally (50%+) performs their duties of their office or employment; OR