How the home office pays off
In times of the corona pandemic, there was hardly a way around it: the home office. Our guest author reveals the tax advantages of having an office at home.
The understanding of work and productivity has been in constant change since the beginning of digitization, which is very much in keeping with the values of young employees in particular. The desire for a work-life balance, remote work and a flexible everyday life determines the new work structures. With the corona pandemic as the driving force, New Work quickly became the New Normal. Employees only do their job – as far as possible – from home and thus receive self-determination and trust from their employer. At the same time, however, the boundaries between the couch, the bedroom and the office in their own four walls are blurring, which is why many employees long for a workplace at home. This should at least bring some order into the newly won chaos. However, this project is associated with high costs, which is often a deterrent at first. But it is precisely this financial effort that is now paying off.
Contents
Separate keyword: From when on it is allowed to speak of a study
Several studies have already shown that working in bed or on the sofa has a negative effect on sleep quality and psychological well-being. Regardless of whether it’s just a short email: the job belongs on the desk.
The regulations of the tax office go one step further and only see a work area as such if it is a separate living area. The Grand Senate of the Federal Fiscal Court decided in 2016 that only fully used workspaces may be claimed as such. This means that corners in the living room or other rooms in the apartment, as well as connecting rooms, are not viewed as full study rooms. There may only be furniture and materials in the room that are used for business purposes.
State of emergency leads to special regulation: the home office is tax deductible
If the job moves to your own four walls, there are various advantages and disadvantages. The absence of commuting creates a lot of newly gained time, which is of little use due to lurking disruptive factors at home. Time thieves are reason enough to clear a room in the apartment so that the employee can isolate himself from domestic distraction. However, there are costs associated with this project which, depending on the initial situation, can quickly skyrocket.
But rescue is approaching and that of all things from this year’s tax return. This means that in the current exceptional situation, up to 1,250 euros per year can be claimed for the home office. This amount applies per person, must not be exceeded and is calculated from the size of the study and the proportionate additional costs. If the room takes up 20 percent of the total area of the apartment, one fifth of the rent can be taken into account. The same applies to electricity, heating and other typical ancillary costs.
Since employees are currently forced to work in their home office and therefore have no other options, this otherwise non-existent regulation comes into force. Couples or shared apartments can each have an amount up to a maximum of 1,250 euros credited, which is why they should definitely name all costs they have borne themselves separately. Self-employed people can list their information without restriction. All employees are solely responsible for providing food and drink.
Also interesting: What the sales tax reform means for online retailers and companies
Coffee, printer and Co: What else can be claimed?
When the term workplace is mentioned, the first thoughts turn to a desk, a lamp and an office chair. It quickly becomes clear, however, that other materials and tools are just as important and may still have to be obtained. Because what would a day be without your beloved coffee machine, for example? In addition, a printer and scanner are required for the first signature at the latest. Perhaps the desire grows in one of the study rooms to change curtains, wallpaper, lamps or carpets in order to shine with a more professional performance in video calls. All these purchases should be definitely named, because the tax office will reimburse the costs incurred for this in full.
Telephone and internet fees as well as costs for small office items such as pens or planners can also be profitable. As soon as your own mobile phone or internet is used for business purposes, the full monthly fees can be deducted as advertising costs. In this regard, the applicant can decide whether to choose the specified flat rate or to submit individual information and evidence for each month. All these items can also be reimbursed and are not included in the already mentioned 1,250 euros for the home office.
Conclusion: Lucrative furnishing of the dream office in your own four walls
In fact, some employees can look forward to the applications from the tax office this year. Because for many, they are likely to be more profitable than in previous years. The reason for this is the new regulations on home office.
In addition to the costs for the desk, office chair and table lamp, all financial expenses can also be claimed that have to do with daily work in any way. Even expenses for renovation work, internet and telephone as well as the pro rata rent and ancillary costs will be reimbursed. These findings pay off twice: employees can finally set up their dream office in their own four walls and get a large part of the costs back. The tax return is more worthwhile than ever.
