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e-mutch
New Member

I worked from home for my employer during covid, as well as for a self-employed position. How do I claim employment expenses- the detailed method, vs flat rate?

 
1 Reply

I worked from home for my employer during covid, as well as for a self-employed position. How do I claim employment expenses- the detailed method, vs flat rate?

Its dependant on whether you will receive a bigger benefit from the detailed method over the flat rate, as well as the complexity of your expenses; the flat rate is much simpler to report.

 

Flat rate method

If you worked for more than 50% of the time from home for a period of at least 4 consecutive weeks in the year due to the Covid-19 pandemic, you can claim $2 for each day you worked from home during that period. The maximum amount that can be claimed is $400 per individual in 2020 and $500 per individual in 2021 and in 2022.

 

The Detailed Method

A tool you can use here: Calculator for the detailed method

With the detailed method you can claim the actual amounts you paid (supported by documents) which may provide you a better benefit, however it is much more complex.

The type of expenses you can claim:

 

  • electricity
  • heat
  • water
  • utilities portion (electricity, heat, and water) of your condominium fees
  • home internet access fees
  • maintenance and minor repair costs
  • rent paid for a house or apartment where you live

What you cannot claim:

 

  • mortgage interest
  • principal mortgage payments
  • home internet connection fees
  • furniture
  • capital expenses (replacing windows, flooring, furnace, etc)
  • wall decorations

To summarize: It is a matter of the amount of benefit you may claim and how complex your expenses may go. If you have plenty of amounts to report beyond the $500 maximum claim amount for the flat rate, then you should go for the detailed method.

For more information, check out: Canada Revenue Agency - Work From Home Covid-19

 

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