Record the work-from-home days for the following reasons:
In the wake of the global pandemic, the number of remote workers has drastically increased. To claim these home-based workdays as tax-deductible expenses, it's crucial to have the right documentation. Here's an essential rundown on the home office flat rate essentials.
From the 2023 tax year, a daily flat rate of €6 per home workday can be considered tax-deductible, or for days when the majority of work was conducted from home. A maximum refund of €1,260 per year is allowed. The Federal Association of Tax Aid Associations advises maintaining detailed records from the start of the year.
Recording Your Workdays
To substantiate home office days and their predominance to the tax authorities, keeping records is key. Consider jotting down work hours in a calendar, Excel spreadsheet, or any digital planner. Be sure to record the starting and ending work times and the tasks accomplished. If you had outside commitments on the same day, note the duration and tasks as well. Additionally, note days when you left your primary workplace, as you can then claim the distance flat rate for commuting instead of the daily flat rate.
When to Use Both Flat Rates
Both flat rates may be combined by taxpayers who lack an employer-provided workplace and have worked both from home and at the workplace on the same day. This often applies to educators, for example. There's no minimum requirement for home activities, but keeping detailed records is highly recommended.
For taxpayers with dedicated home offices, the daily flat rate is also accessible if they opt not to detail expenses.
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Curated Insights:
- Germany's home office flat rate is designed as a simplified method for employees to deduct home office expenses without needing detailed receipts or calculations.
- €6 per day is the flat rate that can be claimed as a tax-deductible business expense for each day worked from home.
- The flat rate reaches a maximum annual deduction of approximately €1,260, or the equivalent of about 210 workdays at €6 per day.
- No dedicated home office space is needed to claim the flat rate, as it covers general home-related expenses, such as heating, electricity, and cleaning.
- The flat rate applies predominantly on days when the employee solely works from home.
- If an employee has a separate room used as a dedicated workspace and meets stricter criteria, the flat rate may no longer apply due to conflicting deductions.
- Taxpayers who also have a dedicated office space at home may no longer be eligible for the flat rate deduction.
- Keeping detailed records and notes of work hours, tasks, and any other relevant information is advised to support the home office deduction claim to the tax office.
- This flat rate was introduced to accommodate the growing number of remote workers during and after the pandemic.
Incorporating personal-finance considerations, individuals working remotely can take advantage of the home office flat rate of €6 per day from the 2023 tax year, potentially claiming a maximum refund of €1,260 per year. Maintaining detailed records throughout the year, including work hours, tasks, and relevant information, is essential to substantiate this home office tax deduction.
When commuting on days with both home and office work, taxpayers can opt to combine the flat rates, as this situation often applies to educators and those without an employer-provided workplace.
