A Guide To Deducting Home Office Expenses As An Employee

INTRODUCTION - Employees working from home due to COVID-19 may be able to deduct home office expenses from their incomes

The emergence of COVID-19 in 2020 has upended traditional work structures across Canada, forcing many Canadians to work from home for the foreseeable future. As a result, many who earn income from employment may be considering claiming home office expenses for the first time when they file their 2020 income tax returns. The Canadian Income Tax Act (the "Tax Act") requires employees to meet stringent eligibility criteria before claiming home office expenses, such as using the workspace primarily for the purpose of earning employment income and being required by their employment contract to incur those costs. Eligible taxpayers may deduct a portion of utilities, rent or condominium fees, and a few other minor expenses, such as renewable supplies, from their employment income, under subparagraphs 8(1)(i)(i) and (ii) of the Tax Act. However, as the