The T2200 tax form relates to Declaration of Conditions of Employment and enables employees to deduct home-based work expenses when filing their income tax returns.
With respect to the Form T2200S (Declaration of Conditions of Employment for Working at Home Due to COVID-19), there is currently no proposal from CRA to extend the flat rate deduction method into 2023 and there is no ability for employees whose roles are inherently work from home (not due to the pandemic) to make use of the flat rate method past the 2022 tax year.
While the university does not generally issue T2200 forms because requirements for employees are rarely met, UCalgary is regularly monitoring for any changes to guidance from the Canada Revenue Agency (CRA) relating to the issuance of T2200 forms and/or the conditions enabling employees to deduct home-based work expenses on their income tax returns.
CRA has not issued any new guidance for the 2023 taxation year. As a result, consistent with current practice, UCalgary will not be issuing the T2200 forms at this point. If guidance from Canada Revenue Agency changes, UCalgary will revisit this decision.
The guidelines of the CRA continue to be as follows:
"To deduct Work-From-Home space expenses for income tax purposes employees must be required by their contract of employment with UCalgary to work from home and directly pay for those expenses without reimbursement from UCalgary. Furthermore, one of the following conditions must also be met:
- The workspace must be where the employee principally (more than 50% of the time) performs their employment duties.
- The workspace must be used exclusively by the employee to earn employment income and be used on a regular and continuous basis for meeting customers or other persons in the ordinary course of performing the duties of employment."
If an employee determines that they have to incur personal expenses to carry out their employment duties, and those expenses align with University policies and procedures, they may wish to prepare an expense claim and have the faculty/business unit charge that cost to faculty/business unit operations as a cost of doing University business.
Questions? Contact the UService team at HR@ucalgary.ca or 403.210.9300