If you work from home, which method should you choose? Here is the comparison:
Flat rate method verses Detailed method.
Description | Temporary Flat Rate method | Simplified Detailed – for office in home expenses | Detailed – for any employment expenses |
Eligibility | Work from home in 2020 due to COVID-19; for more than 50% of the time for a period of at least 4 weeks, not claiming other employment expenses; and not reimbursed all of the employee’s home office expenses. | Work from home due to COVID-19 | Employee’s contract requires them to pay their own expenses while carrying out the duties of employment. |
Deduction amount | $2 per day up to max. of $400 (Employer certification not required) | Claim per calculation on new T2200S and new T777S (certified by employer and supported by receipts) | Claim per calculation on T2200 and T777 (certified by employer and supported by receipts) |
Limitation | Restricted home office expenses to max. $400 | Restricted for office in home expenses only | Can claim other employment expenses |