COVID-19, Working From Home and Expenses

By June 2, 2020 June 4th, 2020 Current Events, Informative Resources
expenses from working from home

Working From Home and You Have Expenses, COVID-19: Can An Employee Deduct Them

Due to the COVID-19 pandemic, working from home has become common and will most likely be how much of society works for the foreseeable future. However, employees are incurring costs building up an office in their home, so the costs must be reviewed for eligibility. Employers need to support employees to ensure the tax reductions can be realized if you work from home.

  • Once you meet the requirements, Home Office Expenses can be deducted from income. This would have to be stipulated in the employment agreement that the costs are the responsibility of the employee.
  • The deduction of Office Expenses and Supplies will be in effect if the employee works more than 50% from its home office.
  • Form T2200 must be filled out by Employer and Employee, and it states that these costs are necessary for the completion of the employees’ duties.
  • If the costs associated with home office expenses attract HST/GST, then it can be applied for the rebate of tax related to the amount of HST/GST amount.
  • During the COVID-19 period, any items purchased for the employee will not attract tax for the employee up-to $500.

For more information on filing your taxes during the COVID-19 pandemic, contact our team of professional tax accountants at Toronto Tax Experts. We proudly assist with small business bookkeeping, independent contactor and consultant bookkeeping, legal bookkeeping for Law Firms, Accounting for Doctors and Physicians, Dental and Pharmacy bookkeeping, and Chiropractic and Physio bookkeeping. 

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