Since March 2020, teleworking has almost become the norm for many of us … And this is not without an additional cost as we limit ourselves to working from home … With our water, electricity, internet connection and sometimes our own computer equipment!
And since April 8th, you have to declare your income taxes for 2020 … If you are teleworking almost all the time, there are a few things to consider in order to be able to deduct certain costs related to teleworking. It might not make you a millionaire, but it’s still a catch!
You receive a flat-rate allowance from your employer
Many teleworkers now receive a flat-rate allowance of around € 2 per day … and this amount is not taxable! On the condition that the flat-rate remuneration paid does not exceed € 2.50 per working day or € 550 over the year. And it is up to your employer to submit this data to the tax authorities. The service-public.fr website states that the income declared by the employer must not include this fixed allowance …
It is up to you to check that your declared income is actually the same as the income you received without this allowance. Apprentices and students who work from home or not are now required to declare their total income. And that also in the case of a bond with the family home.
Is the real cost more attractive than the allowance?
The standard tax break is 10% per year, but the real cost can sometimes be more attractive. Indeed, if you telecommute, you may need to buy a trendy office chair or a more powerful computer. Note that you can therefore deduct 50% of the price.
Is the real cost more attractive than the allowance? Photo credit: Shutterstock / Rawpixel.com
The tax authorities believe that the use is half private, half professional. Hence the 50% that must be deducted from your income. URSAFF offers a list of costs that can be deducted from its income when teleworking. It might be really worth checking to see if you’ve switched desks, shelves, or even desk lamps!
Heating, electricity and internet connection?
While they’re also deductible from income tax, the calculations for working from home are a little more complicated than for actual expenses. If you have “condemned” a room in your home to telework, you can deduct the costs associated with its use. The following costs can be deducted after a somewhat tedious calculation:
Fixed costs including:
Rent or rental value Housing tax Property tax on land built Regional, departmental or municipal taxes such as household waste collection tax Condominium fees House insurance with several risks
Variable costs including:
Heating and / or air conditioning electricity
To calculate the deductible amount, URSAFF gives the following example: For an apartment of 70 m², of which 10 m² is used for teleworking; with a rent of € 370 / month, a residential tax of € 35 / month and an insurance premium of € 15 / month. The deductible costs are 420 x 10/70 = € 60. The same calculation should be able to apply to electricity, internet and heating.
Regardless of whether it is about purchased goods (IT, furniture) or variable costs, everything must be justified with the purchase invoice, subscription invoice, insurance contract, etc. For example, if you are used to reporting high mileage costs, subtracting the actual cost of teleworking will not necessarily be interesting. But as always, it’s a personal calculation.
What is the deadline for filing your income tax?
1st zone: May 26th, 2021 for departments No. 01 to 19 and non-French taxpayers 2nd zone: June 1st, 2021 for departments No. 20 to 54 (including the two departments of Corsica) 3rd zone: June 8, 2021 for divisions 55 to 974/976.
Good luck everyone, time flies by, don’t do it at the last minute, the waiters may not take it!