More Working From Home Updates!

On January 18, 2022, CRA released more commentary on working from home expense deductions. They include:

  • The temporary flat rate method is now available through 2022. For 2021 and 2022 the cap is $500.

  • The eligibility criteria for the temporary flat-rate method and simplified detailed method will remain substantially the same for 2021.

  • This FAQ was added:

If my spouse and I both worked from home and both meet the eligibility criteria, how do we each calculate our work-space-in-the-home expenses using the detailed method?

You have to first determine the eligible home office expenses you can claim and then calculate the total employment-use amount of those expenses:

  1. Expenses you can claim

    The CRA generally allows some flexibility in letting you and your spouse decide how to share eligible work-space-in-the-home expenses, as long as you meet all of these requirements:

    • you or your spouse must have paid the expenses yourselves

    • you reduce the amount of any expense by the amount of any reimbursement that either you or your spouse received for the expense

    • the expense is claimed as a deduction only once

    For example, John and Jane are common-law partners. They paid $1,400 monthly for rent. Either John or Jane (but not both) can claim the full $1,400, or they can share the total of $1,400 as they want (50/50, 70/30, 40/60, etc.).

  2. Employment-use amount of those expenses

    This is determined by multiplying the eligible expenses from 1) by your employment-use percentage of the work space. Your employment-use percentage of the work space depends on whether you and your spouse used a single work space or worked in different work spaces in the home. For more information, see Determine your work space use.