Friday. 24.05.2024

Many workers suddenly had to start teleworking. At the same time, the taxpayer has begun submitting pre-filled tax returns. 

Should this spring's extraordinary working conditions be considered in taxation?

Minna Palomäki, Senior Tax Inspector General, points out that the tax returns received this spring are from last year.

"These things will come up for consideration this year only when the pre-filled tax return for this year comes," said Palomäki to Yle. However, it is a good idea to keep notes and any receipts.

It is important to state when the remote work has started and how many days it takes. This has an impact on possible commute subsidies.

1. Travel allowance

Travel between home and work is reduced by the cheapest means of transport such as public transport. The deductible for travel expenses this year is 750 euros.

The teleworking obligation caused by coronavirus affects the commuting costs of many Finns. When costs are not incurred, they cannot be deducted for tax purposes either.

Palomäki said, “The deduction can only be made on the actual days of work. Teleworking in the spring will easily lead to no excess in the travel between home and work.”

2. Workroom Reduction

The teleworker can get a tax deduction for the office. However, the teleworking days in the spring may not be enough.

If teleworking is performed at home for more than half of the total number of working days during the year, you may receive a tax deduction of 900 euros.

If you work remotely for less than half the working days, you can deduct 450 euros. If there is no other acquisition cost, the amount will then remain within the limit of 750 euros.

The 450 euros and 900 euros are so-called schematic reductions in office space, which include an assumption about the price of the furniture.

If you do not apply for a schematic reduction of the workspace, you can apply for a reduction against the actual cost of the workspace. Again, the minimum threshold of 750 euros must automatically be deducted.

3. Self-procured tools

If you must buy tools for remote work, such as a computer or keyboard, you may qualify for a tax deduction.

The cost of work equipment is not included in the deduction for workroom.

The work tools also have a deductible, which is part of the 750 euros income tax deduction.

4. Communications

In addition to the cost of the office, a teleworker can reduce the cost of telecommunications, such as broadband. If the connection is partially operational, the cost may be reduced by 50%.

If the connection is mainly for work, you may be able to deduct the full amount from the teleworking months.

If the connection is paid for by the employer, it will not cost you and cannot be tax deducted.

Four things to keep in mind for your tax return after Covid-19