Specific Measures for the Tax Processing of Teleworking Expenses
Facing the Covid-19 crisis, the use of teleworking is massive. To guide taxpayers in their 2020 income tax return, the Ministry of Economy, Finance and Recovery has introduced measures to facilitate the tax processing of professional expenses related to teleworking.
The allowances paid by the employer to cover the costs of teleworking at home will still be exempt from income tax. They may take the form of :
- lump sum reimbursements
- reimbursements of actual expenses
It is up to employers to identify these allowances in the information they send to the tax authorities. The amount of taxable income pre-filled on the tax return should not, in principle, include such allowances. Employees will be able to verify this when declaring their 2020 income by checking the pre-filled amounts against :
- their pay slips,
- the annual tax certificate issued by their employer.
Flat-rate deduction of professional expenses
In order to make it easier for taxpayers, special arrangements have been made for lump sum allowances. The latter will be exempted up to a limit of €2.5 per day of teleworking at home, i.e. an exemption of €50 per month including 20 days of teleworking. In any case, the special lump sum allowance will be presumed to be exempt up to an annual limit of 550€.
This tolerance is applicable if the allowance covers exclusively professional expenses incurred for teleworking at home, excluding the usual expenses generally required for the exercise of the profession, which include in particular travel expenses between home and the workplace and catering expenses.
Deduction of actual professional expenses
For employees who have opted for the deduction of professional expenses for their real and justified amount, the expenses incurred for the needs of their professional activity, when this has been carried out in the form of teleworking at home, may be deducted up to the amounts mentioned above, the taxpayer retaining the possibility of deducting them for their exact amount if this is more favorable.
You will soon be able to find all of the terms and conditions for the application of these measures and details on the nature and amount of the deduction of teleworking expenses, in particular expenses related to the professional use of private premises, on impots.gouv.fr.
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