Two Methods to Claim
| Method |
Best For |
Max Claim |
Documentation |
| Flat Rate |
Simplicity |
$500 |
Track days only |
| Detailed |
Large expenses |
No maximum |
Receipts + T2200 |
Flat Rate Method
How It Works
| Factor |
Details |
| Rate |
$2 per work-from-home day |
| Maximum |
$500 per year (250 days) |
| T2200 needed |
No |
| Receipts needed |
No |
| Who qualifies |
Work from home 50%+ of the time for at least 4 consecutive weeks |
Calculation Example
| Situation |
Days |
Claim |
| Full-time WFH (250 days) |
250 |
$500 |
| Hybrid (3 days/week × 50 weeks) |
150 |
$300 |
| Partial year (6 months FT) |
125 |
$250 |
When to Use Flat Rate
| Choose Flat Rate If… |
| Your expenses are under $500 |
| You don’t want to track receipts |
| Your employer won’t sign T2200 |
| You want simplicity |
Detailed Method
Requirements
| Requirement |
Details |
| T2200 form |
Signed by employer |
| Receipts |
All claimed expenses |
| Work space |
Principally used for work OR meet clients regularly |
| Calculation |
Workspace % of home |
Eligible Expenses (Employees)
| Expense |
Salaried |
Commission |
| Electricity |
✅ |
✅ |
| Heat |
✅ |
✅ |
| Water |
✅ |
✅ |
| Internet |
✅ (work portion) |
✅ |
| Rent |
✅ |
✅ |
| Home insurance |
❌ |
✅ |
| Property taxes |
❌ |
✅ |
| Maintenance/repairs |
✅ (minor) |
✅ |
| Mortgage interest |
❌ |
❌ |
Note: Salaried employees have more restrictions than commission employees.
Calculating Workspace Percentage
| Method |
Calculation |
| Square footage |
Workspace sq ft ÷ Total home sq ft |
| Room count |
1 room ÷ Total rooms (less accurate) |
Example
| Factor |
Amount |
| Home size |
1,500 sq ft |
| Office size |
150 sq ft |
| Workspace % |
10% |
| Annual utilities |
$3,600 |
| Annual internet |
$1,200 |
| Total expenses |
$4,800 |
| Claimable (10%) |
$480 |
Detailed Method Example
| Expense |
Annual |
Work % |
Claimable |
| Rent |
$24,000 |
10% |
$2,400 |
| Hydro |
$1,800 |
10% |
$180 |
| Heat |
$1,500 |
10% |
$150 |
| Internet |
$1,200 |
50% |
$600 |
| Water |
$600 |
10% |
$60 |
| Total |
— |
— |
$3,390 |
When to Use Detailed Method
| Choose Detailed If… |
| Your expenses exceed $500 |
| You’re a commission employee |
| You have a dedicated workspace |
| Employer will sign T2200 |
What It Is
| Purpose |
Details |
| Form name |
Declaration of Conditions of Employment |
| Who completes |
Employer |
| What it confirms |
You’re required to work from home |
| Submit to CRA? |
No — keep for your records |
Getting a T2200
| Step |
Action |
| 1 |
Request from HR/employer |
| 2 |
Employer completes and signs |
| 3 |
You keep for records |
| 4 |
Don’t submit with return |
| 5 |
Provide if CRA asks |
T2200 vs T2200S (Simplified)
| Form |
When Used |
| T2200 |
Standard detailed claims |
| T2200S |
Simplified (COVID-era, may continue) |
Special Situations
Renters
| Expense |
Claimable |
| Rent |
Yes (workspace %) |
| Utilities |
Yes (workspace %) |
| Internet |
Yes (work %) |
| Tenant insurance |
Only if commission employee |
Homeowners
| Expense |
Claimable |
| Utilities |
Yes (workspace %) |
| Internet |
Yes (work %) |
| Home insurance |
Only if commission |
| Property tax |
Only if commission |
| Mortgage interest |
No |
| Principal |
No |
| CCA (depreciation) |
Generally avoid* |
*CCA can trigger capital gains issues when you sell.
Condo Owners
| Expense |
Claimable |
| Condo fees |
Yes (workspace %) |
| Utilities |
Yes (workspace %) |
| Internet |
Yes (work %) |
| Property tax |
Only if commission |
Shared Workspace
| Situation |
Approach |
| Share with spouse |
Each claim their portion |
| Share with roommate |
Only your share of expenses |
| Kids home too |
Still claim your workspace |
Internet Deduction
How to Calculate
| Method |
Calculation |
| Simple |
50% of internet (work vs personal) |
| Detailed |
Hours worked ÷ Hours available × Internet |
Example
| Factor |
Amount |
| Monthly internet |
$100 |
| Work use estimate |
50% |
| Monthly claim |
$50 |
| Annual claim |
$600 |
Supplies and Equipment
Supplies (Consumable)
| Item |
Claimable? |
| Pens, paper |
Yes |
| Printer ink |
Yes |
| Notebooks |
Yes |
Equipment (Capital)
| Item |
Claimable? |
| Computer |
Generally no (employee) |
| Desk |
Generally no (employee) |
| Chair |
Generally no (employee) |
| Monitor |
Generally no (employee) |
Note: Employees generally cannot claim capital equipment. Self-employed can.
Self-Employed Home Office
More Deductions Available
| Expense |
Employee |
Self-Employed |
| Utilities |
✅ |
✅ |
| Internet |
✅ |
✅ |
| Rent |
✅ |
✅ |
| Insurance |
Commission only |
✅ |
| Property tax |
Commission only |
✅ |
| Mortgage interest |
❌ |
✅ |
| CCA |
Generally avoid |
✅ (with care) |
| Full equipment |
❌ |
✅ |
How to Claim
On Your Tax Return
| Form |
Line |
| T777 |
Home Office Expenses (detailed) |
| T1 |
Line 22900 (Other employment expenses) |
| Flat rate |
Line 22900 (no T777 needed) |
Steps
| Step |
Action |
| 1 |
Calculate workspace % |
| 2 |
Total all eligible expenses |
| 3 |
Apply workspace % |
| 4 |
Complete T777 if detailed |
| 5 |
Enter on Line 22900 |
| 6 |
Keep all receipts |
Common Mistakes
| Mistake |
Correction |
| Claiming mortgage principal |
Not deductible |
| No T2200 for detailed |
Get form signed |
| Claiming full internet |
Only work portion |
| Inflating workspace % |
Be reasonable, audit risk |
| Missing flat rate option |
Consider simpler method |