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

  • 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.
  • To qualify for home-office expenses:
    • The home office must be used for work more than 50% of the time for a period of at least 4 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, 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, fax machines that reasonably relate to earning commission income.
  • Employees cannot claim the following: mortgage interest, principal mortgage payments, home internet connection fees, furniture, capital expenses (i.e. replacing windows, flooring, furnace, or wall decorations).
  • Employers can now sign the Form T2200 electronically.

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