Working From Home Tax Guide
Not based in a company office and unsure what’s on the deduction list at tax time?
Never fear, you have come to the right place for your working from home tax guide.
Your desk or office space might be located in the comfort of your private abode, but the good news is you can still claim things with the help of a handy working from home tax guide.
Our working from home tax guide is exactly that, a guide! It’s to help you work out what you may or may not be able to claim on any expenses related to working from home.
Mobile Tax and Accounting Solutions can help with any questions or extra information you need.
What can you claim a tax deduction on?
A tax deduction can be claimed for the work-related proportions of household costs. This can include:
- Bills for heating, lights and cooling.
- Expenses for internet and phone (mobile or landline).
- Cost associated with the cleaning of your work area at home.
- Depreciation of furniture and fittings in your home office and office equipment and computers.
- Costs associated with repair work on furniture and equipment in your home office.
- Items such as printer ink and stationery.
Claiming with the fixed rate
From July 1, 2022 onwards, the fixed rate was set at 67 cents per hour.
This revised rate covers your energy expenses (electricity and gas); phone usage (mobile phone and landline); internet and stationery and computer consumables.
It is important to note that no additional deduction for any expenses covered by the rate can be claimed if using this method.
What you need to do to comply
As of March 1st 2023, you need to keep a record of all the hours you have worked at home across the entire income year.
This can be in the form of timesheets, rosters, logs relating to access of employer or business systems or a diary.
You should also keep records for each expense covered by the fixed rate per hour.
Claiming with the actual cost method
This hasn’t changed and you can still claim the actual work-related portion of your running expenses. You still need to keep detailed records for all working from home expenses that you intend to claim for.
What can’t be claimed
Mortgage interest if you own your home, rent, rates and home insurance can’t be claimed. The exception to this is where you run your business from home or use it as a base for your business.
Is there a limit on how much you can claim?
Simply put, no there isn’t. As long as you claim by the rules and you have all the necessary paperwork to back up your claim, you can claim what you feel you’re entitled to.
Have a tax related question burning a hole in your pocket?
We’re here to help! Reach out to MTAS today.