the headache of telecommuting costs on your tax return

Since 2020 and the start of the Covid epidemic, telework has exploded. Millions of workers may have incurred additional costs to work from home. In return, some received specific allowances from their employer. In this context, what should you tell the tax authorities in your tax return?

It’s a revolution that can have direct consequences on your tax return. With the health crisis, you are millions of assets to have switching overnight to telework. And in many companies, this new organization has taken hold, even with the decline of the epidemic.

The financial impact is not neutral for those concerned. Between the costs of heating, electricity, dedicated supplies (furniture, headphones, printer, etc.) or even coffee, the monthly bill varies between 13 and 186 euros per month, according to a study by ConvictionsRH. How do I declare these telework expenses? Here are the different scenarios.

You incurred telecommuting costs, but did not receive an allowance from your employer

Do you think that telecommuting costs have not been too high? It is then preferable to keep the default optionthat of the 10% flat-rate allowance of your income. Indeed, the tax authorities do not calculate income tax directly on declared salaries. It applies by default a deduction of 10% on professional income to take into account, in particular, the cost of travel from home to the place of work, catering costs at the workplace or the purchase of personal documentation not provided by the employer. And, if applicable, the costs related to teleworking. For each employee, the amount of this 10% deduction on 2021 income is maximum 12829 euros.

Example: if 20,000 euros are entered in box 1AJ, 2,000 euros of income are considered professional expenses and the tax authorities will calculate the tax on the basis of 18,000 euros. The 10% reduction being the default solution, you do not have to do anything for it to be taken into account.

If it is more advantageous for you, you also have the option ofopt for the deduction of actual costs. Regarding the costs related to home telecommuting, you then have two options:

  • Deduct a lump sum equivalent 2.5 euros maximum per day of home teleworking, 55 euros per month or 580 euros per year.
  • If this is more favorable to you, deduct the exact amount of the costs incurred, provided you can justify them.

You have received a telecommuting allowance

According to a study by Sia Partners, more than 3,000 companies had put in place, by the end of 2021, an agreement allowing them to compensate the teleworking costs of their employees, for an average amount of 2.41 euros per day.

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The government confirmed this at the beginning of March: these flat-rate allowances received in 2021 are exempt from income tax, also up to 2.50euros per day, 55euros per month and 580euros per year (against 550 euros in 2020).

If the benefit received does not exceed these ceilings, you do not have to declare it. The amount of taxable income pre-populated on the tax return, based on information provided by your employer, should not, in principle, include it. It is better to check, however, by comparing the pre-filled amounts with your payslips or the annual tax certificate issued by your employer.

Taxes 2022: your income and benefits that escape the declaration

Attention! If your employer has you an allowance of an amount greater than the exemption ceilingsyou must be able to justify that you have indeed used the amount exceeding the exemption ceiling for your teleworking expenses. Otherwise, you must report this surplus in box 1AJ Salaries and wages of the income tax return.

From theory to practice

Here is an example given by the IRS. For the year 2021, Mr. X received salaries and wages for 60,000 euros and a lump sum allowance from his employer in the amount of 800 euros (80 euros per month for ten months) intended to cover his professional expenses for home teleworking. Indeed, he teleworked 5 days per week from March 1, 2021.

The allowance received by Mr. X is exempt for the part deemed to be used in accordance with its purpose, i.e. up to 500 euros, the surplus of 300 euros having to be declared under heading 1AJ, i.e. 60,300 euros in total. On the other hand, if Mr. X is able to prove that the totality of the 800euros paid was used to cover, with supporting documents, professional expenses, he did not report the surplus in box 1AJ and leaves 60,000euros.

You also have the possibility to opt for the deduction of actual costs. You then have two options:

  • or you choose not to declare this allocation: in this case, you do not have to deduct your expenses related to teleworking;
  • or you choose to deduct all of your telework expenses: in this case, you must reintegrate the amount of the allowance into the wages and salaries declared. This solution may be appropriate if the amount of your expenses exceeds that of the allowance.

What teleworking costs can you deduct for the actual cost declaration?

In his brochure dedicated to telework expensesthe tax authorities provide details of what you can deduct:

  • Communication costs (other than mobile phone costs): subscription costs, subscription to an internet offer, fixed telephone operating costs;
  • Mobile phone charges: subscription, communication and mobile phone acquisition costs;
  • Costs of supplies and printed ink cartridgesreams of paper;
  • Expenses for the acquisition of furniture and computer equipment for the purposes of professional activity;
  • Travel expenses between home and place of work (with justification of the need for travel between home and place of work);
  • Costs related to the use of a private room, costs of electricity, water, heating, home insurance, diagnosis of electrical conformity, local taxes. The costs must be calculated in proportion to the surface area used professionally in relation to the total surface area of ​​the accommodation (for a studio: 50% of its surface area) and in proportion to the teleworked working time.

These non-deductible expenses

The tax authorities specify, on the other hand, that in the event of declaration of income at actual costs, no meal costs are allowed as a deduction for teleworked days, nor any deduction of childcare costs as professional expenses. including when both parents telework.

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