SteuerGo FAQs

(2023) Can I claim a deduction for my home office?

Expenses for a home office can be deducted as business expenses or operating costs.

From 1 January 2023, the tax treatment of expenses for "home office" and "homework" has been newly regulated, with the following two cases to be distinguished (§ 4 para. 5 no. 6b and 6c EStG, amended by the "Annual Tax Act 2022" of 16 December 2022; BMF letter of 15 August 2023, IV C 6-S 2145/19/10006):

1. The home office is the "centre" of all business and professional activities:

   In this case, the costs of the home office can be deducted as business expenses or operating costs either in the actual amount or - new - with an annual flat rate of 1,260 Euro. However, it must be a "genuine" home office, i.e. a separate room used almost exclusively for work and containing no private items. For example, writers, translators or IT specialists who work almost exclusively from home have the centre of their activity in their home office.

2. No centre, but work is (also) carried out at home:

   In this case, a daily allowance of 6 Euro can be deducted for each day, for a maximum of 210 days, i.e. a maximum of 1,260 Euro per year. To receive the daily allowance, the workplace in the home does not have to meet any special requirements. It does not matter whether you work in a work corner, at the kitchen table or in a separate room.

Home office as centre

As stated above, expenses for the home office may be deducted in full or with the annual allowance if it is the "centre of all business and professional activities" (§ 4 para. 5 sentence 1 no. 6b sentence 2 EStG). The following details must be observed:

• The annual allowance of 1,260 Euro is a flat rate that covers the expenses for all business and professional activities in the home office. Costs up to 1,260 Euro do not have to be proven.
• The option to deduct the annual allowance instead of the actual expenses can only be exercised uniformly for the entire year. The option can be exercised until the tax assessment becomes final.
• The annual allowance is applied on a monthly basis. If the conditions for deducting home office expenses are not met for the entire year, the annual allowance is reduced by one twelfth for each full calendar month in which the conditions for deducting home office expenses are not met.
• The annual allowance is to be applied on a per-person basis. It cannot be claimed multiple times for different activities, but must be allocated to the different activities if necessary.
• In addition to the deduction of the annual allowance, a deduction of the daily allowance (6 Euro per day) for another activity for the same period is not permitted.
• If several people, e.g. spouses, partners, share a home office, the conditions must be checked for each individual taxpayer.

Example 1:

A and B each use a home office 50% of the time. Only for A is the home office the centre of all business and professional activities. The total costs are 4,000 Euro and are borne according to the usage share.
A can deduct 2,000 Euro as business expenses or operating costs. B cannot deduct any expenses for a home office for the business or professional activity carried out in the home office, but only the daily allowance of 6 Euro per day.

Example 2:

A and B share a home office, which is the centre of all business and professional activities for both of them throughout the calendar year. They waive the calculation of the expenses incurred for this and can therefore each deduct the annual allowance of 1,260 Euro as business expenses or operating costs.

Professional activity at home, but not the centre

Corona has changed the world of work. Many employees work partly in the home office and partly at the company or authority, so the centre of their activity is not in the home office. And not all employees (or self-employed) have a separate room that is accepted as a home office for tax purposes. However, they also incur expenses for heating, electricity and water due to their professional activity in the home, e.g. in a work corner. In the years 2020 to 2022, those who worked from home and did not have a recognised home office could claim a flat rate of 5 Euro per day, up to a maximum of 600 Euro per year, as business expenses. This was the home office allowance. And from 2023, they are also entitled to tax relief.

• From 1 January 2023, the home office allowance is no longer limited. The tax deduction has been increased from 5 Euro to 6 Euro per day and is granted for a maximum of 210 instead of the previous 120 homework days. Unlike the previous 600 Euro, the maximum amount is now 1,260 Euro per year (§ 4 para. 5 no. 6c EStG, introduced by the "Annual Tax Act 2022" of 16 December 2022).
• The previous term "home office allowance" was misleading as it gave the impression that a home office was required. The legislator now refers to an activity in the home - probably regardless of whether it is the main or holiday home. Therefore, it should now be referred to as a homework allowance or simply a daily allowance.
• To receive the daily allowance, the workplace in the home does not have to meet any special requirements. It does not matter whether you work at the kitchen table, in a work corner or in a separate room. The concept of a home office is not a prerequisite for the deduction of the allowance. The daily allowance covers all (additional) expenses for the use of the home.
• Daily allowance: Taxpayers can deduct a flat rate of 6 Euro for each day on which the business or professional activity is carried out "predominantly" in the home and the first place of work is not visited. A deduction of the daily allowance is also permissible if another workplace is available. "Predominantly" is a time-based determination. This means that more than half of the actual daily working time must be spent in the home.
• Maximum amount: The deduction of the daily allowance for a home workplace is limited to a maximum of 1,260 Euro per year (210 days x 6 Euro). The costs for work equipment can be deducted additionally.
• Option: For simplification purposes, employees who have a recognised home office can also choose between the - possibly pro rata - annual allowance of 1,260 Euro and the daily allowance of 6 Euro per day. It is not permissible to deduct actual costs, annual or daily allowances side by side. This also applies if several activities are carried out in the calendar year. The deduction always refers to the entire business and professional activity of the taxpayer.
• Activities: If taxpayers carry out different business or professional activities, both the daily allowance of 6 Euro and the maximum amount of 1,260 Euro can be allocated to the different activities or assigned to one activity in total. The amounts cannot be deducted multiple times for different activities.
• Double household: If accommodation costs are claimed as part of a double household, an additional deduction of the daily allowance is not permitted. The same applies if costs for a home office are deducted.
• Offsetting: The daily allowance is offset against the employee allowance of 1,230 Euro, just like other business expenses. This means that there is only a tax saving if the total business expenses exceed 1,230 Euro.
• Record-keeping obligation: The calendar days on which the conditions for claiming the daily allowance are met must be recorded by the taxpayer and credibly demonstrated in an appropriate form.

The question is whether travel expenses can also be deducted in addition to the daily allowance.

Here it is necessary to distinguish whether the journeys are to the "first place of work" or are carried out as part of "off-site work" (basic case). And then there is a special regulation if "no other workplace is permanently available". Let's start with the basic case:

• Journeys to the first place of work: If the employee also travels to their first place of work on a day with homework, the daily allowance of 6 Euro cannot be deducted, but only the travel costs with the distance allowance. A combination of allowance and travel costs is generally not permitted. In these cases, it does not matter for the deduction of the daily allowance whether another workplace is available to the employee.
• Journeys as part of off-site work: If the employee also carries out off-site work in addition to working in the home, they can deduct both the daily allowance and the travel expenses (business trip). However, the daily allowance is only available if the work is carried out "predominantly in the home" on that day, i.e. more than half of the actual daily working time.

Example 1:

An employed civil engineer first goes to the construction site (off-site work) on one day and then does the office work not at the employer's workplace (first place of work) but at his workplace in the home. The civil engineer can deduct both travel expenses for the journey to the construction site and the daily allowance for this day if the work was carried out predominantly in the home, i.e. more than half of the total working time of the day.

Example 2:

V is an employed insurance broker. On one day, V first drives to a customer (one hour travel time) and advises them in their home (duration: two hours). V then drives back home (one hour travel time). From there, V carries out further professional activities at the kitchen table in the home (three hours). V has another workplace available in the employer's office (first place of work). V does not work predominantly in the home. The travel times (total of two hours for the outward and return journey) and the consultation at the customer's premises (two hours) together exceed the working time in the home (three hours). V is not entitled to the daily allowance.

Special regulation "no other workplace":

If "no other workplace" is permanently available for the professional or business activity and the activity is carried out in the home and at the first place of work or off-site, both the daily allowance and the travel expenses or travel costs can be deducted. In these cases, it is not necessary for the activity to be carried out "predominantly in the home". The special regulation applies to many teachers whose main place of work is at school, but who do not have a desk there for lesson preparation and follow-up.

Example:

Mr Steuerle is a teacher and teaches at school daily from 8:00 a.m. to 1:00 p.m. and carries out lesson preparation and follow-up work and marks classwork in the home from 3:00 p.m. to 6:00 p.m. No other workplace is available to Mr Steuerle at the school for lesson preparation and follow-up. Mr Steuerle can deduct both the distance allowance for the journeys to the school (first place of work) and the daily allowance for the professional activity in the home.