Home office expense deduction 2022
Similar to 2020 and 2021, if you worked more than 50% of the time from home for a period of at least four consecutive weeks in 2022 due to COVID-19, you may be eligible to claim a home office expense deduction on your tax return. Eligible employees have the option of choosing between two methods for claiming a home office expense deduction for 2022. The two methods are as follows:
Temporary flat rate method ─ provides a deduction of $2 per day for each day the eligible employee worked from home, up to a maximum of $500, with no need to track expenses or obtain forms from your employer.
Detailed method ─ allows an eligible employee to claim the employment portion of actual home office expenses paid, which would require itemizing expenses and obtaining a signed form T2200S or T2200 from your employer.
For more information on the employee home office expense deduction, refer to CRA’s webpage, which includes a calculator and FAQs.
If you are self-employed, you have much more flexibility and can generally deduct reasonable expenses incurred to earn business income, such as stationery supplies used in the business. Self-employed individuals can also deduct workspace in the home expenses if the workspace is either:
The individual’s principal place of business; or
Used exclusively to earn business income and is used on a regular and continuous basis for meeting clients, customers, or patients of the individual in respect of the business.
Where one of these conditions is met, deductible amounts include the business use portion of a reasonable allocation of expenses related to your home office, including capital cost allowance, mortgage interest, and property taxes.