Most employees who have to work from home, either part-time or full-time, due to the COVID-19 pandemic normally have their workplace at the company: an office with a desk, chair, computer, phone, printer, and similar equipment.
When can I claim expenses for my home office?
Those who are now suddenly working from home often find themselves sitting at the dining table, in a work corner of the living room, or even at a desk in the hallway, working on a company laptop or their own computer with access to the company server. Under current tax law, employees can only deduct the costs of their home office if it is a separate room. The tax office does not accept a walk-through room, the kitchen table, or a corner of the living room. Anyone currently working from home in a corner of the living room for several weeks will not be eligible for a deduction. This is because the definition of a home office requires that the room be furnished like an office and used exclusively or almost exclusively to generate income.
Anyone who can prove that no separate workspace is available for their business or professional activities may deduct the costs of their home office from their taxes—but only up to a maximum of 1,250 euros per year. This is difficult for anyone whose workplace is generally open but whose boss has not issued an explicit directive to work from home, but merely “recommends” it.
Increase Your Chances with the Tax Authorities: Collect Receipts
Whether or not you have a separate home office: Employees should
- obtain a written certificate from their employer stating the period during which their workplace at the company was unavailable and they therefore had to work from home
- Keep as precise a record as possible of when the work corner or home office was used—for example, in the form of a table with dates, number of hours, or a printout of the time-tracking account showing requested and approved remote work. Photos of the work corner or home office are also acceptable
- Keep receipts for items such as printer paper, writing supplies, electricity, and phone bills in case the employer does not reimburse these costs. A flat rate of up to 20 percent of telecommunications expenses per month, up to a maximum of 20 euros, can be claimed as income-related expenses. The maximum amount of 20 euros per month is reached by those with a monthly phone bill of at least 100 euros. One-time costs that do not appear on the monthly bill are not taken into account when determining the maximum amount
The more detailed the records and supporting documents are, the greater the chances that the tax authorities will recognize the expenses.
Note on the Commuter Allowance
Employees who normally drive to work and have been working from home for weeks or months due to the coronavirus will also have significantly fewer kilometers on their odometer. They should expect the tax office to scrutinize tax returns that report 220 workdays of travel to their primary place of work.
Commuters who have entered an allowance on their electronic income tax card (ELStAM) are required to notify the tax office if the approved income tax reduction changes. This applies, among other things, if the commuting allowance decreases due to working from home or a job change.
