What’s new for employee home office expenses from 2023

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February 15, 2024

On January 23, 2024, the Canada Revenue Agency (CRA) issued a new Form T2200 Declaration of Conditions of Employment for Working at Home for the 2023 taxation year.

Below is a brief summary of key details from the form:

Employers must fill out the detailed T2200 for employees to be able to deduct employment expenses, including home office expenses in 2023.
The temporary flat rate method (and the T2200S) that could be used for 2020, 2021 and 2022 is no longer available in 2023.
To be eligible for home office expenses:

Employees must be required to work from home (either in a written or verbal agreement); or
Employees must have voluntarily entered into a formal telework arrangement with their employer for 2023.

The home office must be used for work more than 50% of the time for a period of at least four consecutive weeks; or
The work space can only be used to earn employment income, and it must be used regularly and continually for in-person meetings with clients, customers or other people while doing work.

If an employee works from home for only part of the year, then the employee can only claim expenses for that part of the year.
Eligible home office expenses for salaried and commission employees include electricity, heat, water, utilities portion (electricity, heat and water) of condominium fees, home internet access fees, maintenance and minor repair costs and rent paid for a house or apartment.
Eligible home office expenses for commission employees also include home insurance, property taxes and leases of cell phones, computers, laptops, tablets or fax machines that reasonably relate to earning commission income.
Employees cannot claim the following: mortgage interest, principal mortgage payments, home internet connection fees, furniture or capital expenses (i.e., replacing windows, flooring, furnace or wall decorations).
Employers can now sign the Form T2200 electronically.