Tax Season Opens as Awareness Gap Leaves Millions of Canadians Missing Work-From-Home Claims

Employment Hero reports that as Canadians begin filing their 2025 income tax returns, many remote and hybrid work may be missing out on valuable work-from-home (WFH) deductions.

New data from the company shows that 26% of Canadians worked from home at least 50% of the time for four consecutive weeks or longer in 2025 meeting the eligibility threshold to claim home office expenses. Despite this, awareness and action remain inconsistent.

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Among Canadians who worked remotely in 2025:

• 31% are unaware they qualify to claim home office expenses
• 36% do not plan to claim deductions, while 13% remain unsure
• 60% say they received no employer guidance on how to claim WFH expenses
• Only 23% received a signed T2200 form, the Declaration of Conditions of Employment required in many cases

The findings highlight a disconnect between the rise of remote work and employees’ understanding of related tax obligations and entitlements.

“Remote and hybrid work are now a permanent part of how Canadians work, but awareness hasn’t fully caught up,” said KJ Lee, CEO of Employment Hero Canada. “Each year, employees miss legitimate deductions simply because they don’t realize they qualify or don’t know what documentation is required.”

Lee noted that while employers are not expected to act as tax advisors, they can play an important role in supporting their teams. Clear communication, internal resources, and timely paperwork can help employees better manage their financial responsibilities.

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To help workers prepare, Employment Hero shared several practical tips for claiming WFH expenses:

• Confirm eligibility under CRA guidelines, including working from home more than 50% of the time for at least four consecutive weeks
• Ask your employer early about obtaining a T2200 form
• Maintain detailed records of eligible expenses such as utilities, internet, and workspace-related costs
• Consider less obvious deductible items like cleaning supplies, stationery, and a portion of rent
• Seek available internal guidance from your employer
• Avoid assuming you are ineligible without verifying

As remote and hybrid work models remain firmly embedded in Canada’s workforce, improving awareness around tax deductions and strengthening employer-employee communication will be essential.

“Work has transformed rapidly, but understanding of tax implications hasn’t kept pace,” Lee added. “Ensuring Canadians know what they’re entitled to claim is part of building a system that reflects how work truly happens .”

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