Employees who have incurred expenses related to their home office that are not reimbursed by their employer may be able to claim a deduction on their tax returns for such expenses if they meet ONE of the following conditions:

• The work space is where the employee principally spends time (more than 50% of the time) to perform his or her work; or

• The employee must use the work space exclusively to earn employment income AND he or she must use it on a regular and continuous basis for meeting clients, customers, or other people in the course of his or her employment duties. Video conferencing satisfies the definition of a “meeting”.

What type of home office expenses are eligible for deduction?

Deductible expenses may include the following:

• Electricity
• Heat
• Water
• Utilities portion (electricity, heat, and water) of your condominium fees
• Home internet access fees
• Maintenance and minor repair costs
• Rent paid for a house or apartment
• Office supplies like pens and paper, and cell phone minutes

You cannot deduct capital items like office chairs, mortgage interest and property taxes.

How can I claim these expenses on my 2021 tax return?

There are two ways to proceed:

1. Simplified method: Employees must have worked more than 50% of the time from home for a period of at least four consecutive weeks in 2021 due to the COVID-19 pandemic to use this method. Employees can claim $2 for each day they worked from home during that period plus any additional days they worked at home in 2021 due to the COVID-19 pandemic, to a maximum of $500 (250 working days) per individual. Your employer does not have to complete and sign Form T2200S or Form T2200.
   
   
2. Detailed method: This method allows you to claim the actual amounts you paid, supported by documents. You must complete Form T777S or Form T777 and get a completed and signed Form T2200S or Form T2200 from your employer.