Prepare your employees to deduct work-at-home expenses for 2020 tax year

In previous tax years, employees had the opportunity to deduct expenses for work-at-home activities.

In 2019 and earlier, an employee could deduct expenses paid for the employment use of a work space in your home, as long as you meet one of the following conditions:

  • The work space is where you mainly (more than 50% of the time) do your work.
  • You use the workspace only to earn your employment income. You also have to use it on a regular and continuous basis for meeting clients, customers, or other people in the course of your employment duties.

In order to support this, employees will need to prepare Form T-2200 from the Canada Revenue Agency.

Deductible expenses

Supplies

You can deduct the cost of supplies you paid for (or that were paid for you and included in your income) if you meet all of the following conditions:

  • Under your contract of employment, you had to provide and pay for the supplies.
  • You used the supplies directly in your work.
  • Your employer has not repaid and will not repay you for these expenses.

A complete overview of allowed supplies can be found here.

Commission employees

To deduct the expenses you paid to earn commission income, you have to meet certain conditions.


Learn more about this form from the Canada Revenue Agency.

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