In Your Home Office the Core of Your Professional Activity Takes Places Tax tip: Have your employer certify that for certain tasks, no other workplace is available to you within the company. Pleas note: It should also be possible to additionally deduct commuting expenses on these days for commuting to your primary place of work! This is particularly relevant, for example, for teachers who teach at school and prepare for lessons at home on the same day. The deductible maximum amount remains 1,260 euros. This is new as of 2023: If you permanently don’t have access to a workplace for certain tasks at your company, you can still claim the Home Office Lump Sum, even if you did not predominantly work from home but also worked at your primary place of work (erste Tätigkeitsstätte) on the same day. This applies regardless of whether you have a tax-deductible home office or not. Instead, you can deduct the Home Office Lump Sum for up to 1,260 euros per year. You also had to provide proof for your expenses.Īs of 2023, the “limited deduction” will be eliminated. The requirement was that your work room at home met the strict requirements for a tax-deductible home office. To avoid tax inequality, the formerly “limited deduction” (beschränkter Anzug) for the home office (häusliches Arbeitszimmer) has also been revised: until and including 2022, you could deduct up to 1,250 euros per year if, for specific professional activities, you did not have a workplace available at your company. The Lump Sum Even Applies, if No Other Workstation is Available In that case, you can deduct up to 1,260 euros per year as Income-Related Expenses (Werbungskosten) or as business expenses (Betriebsausgaben) for tax purposes. The requirement is that you spend the working day predominantly at home (more than 50% of your working time) and did not work at your primary place of work (erste Tätigkeitsstätte). For each working day, you can now claim 6 euros. In addition, the lump sum has been increased: You can now claim up to 210 working days spent at home. Part of the tax changes in 2023 was to align and simplify the regulations regarding home offices and the Home Office Lump Sum. The Lump Sum is Made Permanent and Increased How the Home Office Lump Sum Works as of 2023 1. The lump sum is limited to 600 euros per calendar year and the limit of days that can be deducted for remote work is 120 days. In your tax returns for the tax years 2020, 20, you can simply deduct 5 euros for each calendar day spent exclusively working from home. How the Lump Sum Worked from 2020 to 2022 The lump sum is intended to cover the additional costs for electricity, water, heating, and telephone due to working from home and it is also supposed to compensate for a decreased Commuting Allowance (Entfernungspauschale) which you cannot claim when you work from home. That’s why in the German Annual Tax Act of 2020 (Jahressteuergesetz 2020), parliament passed the so-called Home Office Lump Sum (Homeoffice-Pauschale), which provides tax relief for all employees who switched to remote work due to Corona and do not have a home office to deduct from their taxes. But until then, only taxpayers who met the strict requirements for a tax-deductible work room at home (häusliches Arbeitszimmer) could benefit from tax relief while working from home. The COVID-19 pandemic has made working from home becoming a daily routine for many people. What is the Home Office Lump Sum (Homeoffice-Pauschale)? Employees claim the lump sum as income-related expenses, while self-employed persons and freelancers deduct it as business expenses in their tax return. Its application was also simplified and the deductible amount has been increased from a maximum of 600 euros per year to up to 1,260 euros per year. As of January 2023, the lump sum now applies indefinitely. Initially, this lump sum applied to the tax years 2020 to 2022. It was intended to provide financial relief to taxpayers working from home without having a dedicated tax-deductible work room. The Home Office Lump Sum was introduced in 2020 during the COVID-19 pandemic. This is How the Home Office Lump Sum Works
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