Government announces simplified tax process for home office expenses

In its November 30, 2020 Fall Economic Statement, the government announced a simplified tax process for Canadians claiming home office expenses:

“The CRA will allow employees working from home in 2020 due to COVID-19 with modest expenses to claim up to $400, based on the amount of time working from home, without the need to track detailed expenses, and will generally not request that people provide a signed form from their employers.” (Fall Economic Statement, section 4.8.3)

The CRA has provided more information about the simplified process for claiming the home office expenses for Canadians working from home due to the COVID-19 pandemic.

The tens of thousands of PIPSC members who have been working from their homes since March may incur substantially more than $400 in expenses in the 2020 fiscal year. For this reason and until more details are provided by the CRA, members should continue to save their receipts and track work-related expenses. Proper accounting of these expenses is essential should additional tax measures be announced in the future. Please remember, employees must seek prior approval before purchasing work-related equipment. The Treasury Board has published guidelines on which telework tools can be provided and on the procedures to request them.

We will communicate more information to our members on this important matter as it becomes available.