Working from home became widely popular during Covid-19, it was a new experience for most people with dining rooms becoming offices and kitchens the new break room.
While working from home has become the new norm, the way you have been claiming your home office expenses is about to change!
Here is the new home office change for 2023 tax year:
Most people took advantage of the quick method of declaring home office expenses during Covid times. This allowed eligible employees to claim $2 for each day they worked from home between 2020-2022 due to the pandemic.
Unfortunately, the temporary flat rate method will not apply to the 2023 tax year, according to the Canada Revenue Agency (CRA). Instead eligible employees who worked from home in 2023 will now be required to use the detailed method to claim home office expenses. .
How will this change impact YOU?
- Your employer MUST issue a T2200/S form in order for you to claim home office expenses. You cannot claim home office expenses without this form. Be proactive and talk to your payroll department NOW to ensure that you will be receiving a T2200 form with your T4. Any professional tax filing service will not claim home office expenses for you without the T2200 form.
- Ensure you are eligible to claim your home office expenses by going through the CRA checklist here.
The CRA is currently updating its form for the 2023 tax year. It will be ready at the end of January 2024. According to their website, the form will be easier to complete for employees planning to deduct home office expenses.
Which form can I receive?
T2200: Form T2200 – Declaration of Conditions of Employment is a form your employer fills out to certify the conditions of employment and that you were required to pay for employment expenses.
Excited for the tax season like we are? Get on our tax 2023 reminder list here.
