The Canada Revenue Agency ("CRA") released an update on the process for claiming home office expenses for the 2021 taxation year. The CRA released the 2021 version of forms T2200s and T777s. Both forms appear to be very similar to the 2020 forms.
For the 2021 taxation year, the temporary flat rate method and the detailed method continue to be available for employees to claim home office expenses. The temporary flat rate stays available ($2/day up to 250 days) for all employees who worked more than 50% of the time from home for at least four consecutive weeks in 2021 (that opens the door to all days worked from home, so 3 out of 5 days a week for 4 weeks means 2 days a week the rest of the year can also be counted).
Similar to 2020, employers are not required to complete and sign a Form T2200s in respect of employees using the temporary flat rate method for claiming home office expenses. Form T777S "Statement of Employment Expenses for Working at Home Due to COVID-19", has been updated to reflect that the maximum deductible amount under the temporary flat rate method has been increased to $500 for 2021. Form T777S will allow taxpayers with the option to carry forward an amount of home office expenses from the previous taxation year.
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