CRA provides updated guidance for employees deducting work-from-home expenses in 2021 & 2022
Summary
The CRA has announced that for both the 2021 and 2022 tax years, employees who work from home at least 50 percent of the time over a period of a least four consecutive weeks due to the pandemic, can now claim up to $500 in expenses per the previously-introduced $2/day flat-rate method. The exact benefit to Jane (either in the form of a bigger refund or smaller bill) will be determined by her respective tax bracket. For 2021 and 2022, the CRA has expanded the list of eligible expenses to include home internet fees. In addition, to claim the work-from-home deduction under the detailed method, employees must: • Principally (i.e. at least 50 percent of the time) perform their job at home, or use their home office exclusively for earning income and for meeting with customers on a regular or continuous basis. The CRA also announced that employees may be reimbursed by their employer for up to $500 in costs related to computer equipment, office chairs and other eligible expenses related to working from home due to the pandemic from March 15, 2020 through December 31, 2021.