Work from home related expenses paid in 2021 write off. A measure that may benefit you
Individual taxpayers in France may write off on their 2021 French tax return home office expenses that they paid.
Whether you’re a w-2 employee or not, you may write off the expenses that you paid in 2021 to set up and to maintain a home office as part of your organization’s policy in the context of COVID-19 government measures. As an employee, you may deduct your home office expenses from your 2021 salaries and wages. It is more advantageous for you to elect to itemize deduct if your unreimbursed employee expenses exceed 10% of your 2021 taxable salaries and wages. You must keep records of the home office expenses that you claim the deduction for.
If you itemize deduct your home office expenses and your employer gives you a special allowance for working from home, then the allowance is taxable. It is taxable regardless of whether the special allowance is under an accountable or a nonaccountable plan.
In 2021, to contribute to limit the spread of the SARS-Cov-2, your employer requires that you work from home for the time being. You set up a space in your house that you use as a home office. To that end, you paid an interior designer, contractors, purchased office furniture, computer and office supplies. Your employer reimburses you a lump sum of EUR1,000.
You may deduct the home office expenses that you paid in 2021. However, the deduction is beneficial only if all the expenses that you itemize deduct exceed 10 percent of your 2021 salaries and wages. If you itemize deduct, then the EUR1,000 allowance for working from home is taxable.
A significant number of people work from home in 2021 as part of the effort to contain the spread of the SARS-Cov-2. Organizations had to adjust how their work. The new work organization requires employees to pay work from home related expenses.