Preparing for Tax Time in a Work from Home Season. Your options & Article 23.6

January 29, 2021

It’s coming up on that (tax) time again. Keep an eye out for your T4 to arrive in your myUFV employee account (typically uploaded in the third week of February). Because of work-at-home realities in 2020, the Canada Revenue Agency has two approaches you can take to write off your work at home expenses. Here are some clarifying details around them.

The first, the temporary flat rate method, will accommodate expenses up to $400 without the need to track detailed expenses. The CRA’s website describes this process with the following guidelines at https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-229-other-employment-expenses/work-space-home-expenses/frequently-asked-questions.html#h-3: “If you worked more than 50% of the time from home for a period of at least four consecutive weeks in 2020 due to COVID-19,you can claim $2 for each day that you worked at home during that period, plus any other days you worked at home in 2020 due to COVID-19, up to a maximum of $400 for the year.”

You can use the temporary flat rate method:

  • As an individual, even if other individuals in your household are also eligible to claim it. It is not limited to one per household
  • Even if you have been reimbursed for some office expenses by your employer
  • Even if you do not work full days from home

To claim the temporary flat rate method, employees must complete Form T777S https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/t777s/t777s-20e.pdf and fill the maximum $400 credit on line 22900 of their 2020 tax return.

If your work from home expenses are more than $400 for 2020, you can use the detailed method (compare your options using the CRA’s calculator at https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-229-other-employment-expenses/work-space-home-expenses/calculate-expenses.html)

As our collective bargaining agreement states in article 23.6 Vehicle or Home Office Income Tax Deduction (on page 98 of the document found at https://www.ufv-fsa.ca/agreement) “UFV will, upon request of an Association member, complete the T2200 Revenue Canada form for tax purposes.”