Working from home has its perks, and one of them is the chance to get some money back through tax deductions. In this blog, we’ll break down who can claim these deductions, what expenses count, and the easy ways to figure it all out. Let’s make sure you’re not missing out on extra cash!
Who Can Get Money Back:
To be eligible for work-from-home expense refunds, you need to:
Do Real Work: Your work from home should involve important tasks, not just checking emails or taking quick calls.
Have Extra Costs: You must spend more directly on things like electricity or the Internet because you’re working from home.
Keep Proof: Keep records to show you spent money on these work-related things.
Types of Money-Back Expenses:
Power and Light: Money you spend on keeping your home office comfy—like electricity and gas.
Internet and Phone Bills: Part of your internet and phone bills that you use for work.
Office Supplies: Money spent on things like pens, paper, and other stuff you need for work.
Gadgets Losing Value: If your work gadgets, like computers, lose value over time, you can get some money back.
Fixing Things: If your work stuff needs fixing, the money you spend on that counts too.
Extra Refunds for Special Home Offices:
Home Office Bills: If you have a special room just for work, you might get extra money back for rent or mortgage interest.
Cleaning Costs: Money spent on keeping your work area clean can also be included.
Choosing How to Get Your Money Back:
Starting from July 1, 2022, you have two ways to figure out how much money you can get back:
Easy Rate Method:
– Get a fixed amount for every hour you work from home.
– Get some extra cash for things not covered by the fixed rate.
– No need for a fancy home office setup.
Real Cost Method:
– Add up the actual money you spent because of working from home.
– Keep good records to show what you spent.
How to Get Money Back for Past Years:
If you want money back for the years before 2022, check the table to see which methods you can use.
Things You Can’t Get Money Back For:
Remember, there are some things you can’t get money back for, like your daily coffee or your kid’s school stuff. If your boss already paid for something, you can’t claim it either.
Getting money back for working from home is pretty simple. Just remember to keep records of what you spend, choose the right method, and check what years you can claim for. It’s like finding extra cash in your pocket—easy and rewarding!