What tax benefits are available for self-employed individuals working from home?
February 17, 2024 | 50,00 EUR | answered by Zofia Schulz
Dear tax advisor,
My name is Leonie Büchner and I am a self-employed graphic designer. Due to the current situation, I have been working exclusively from home for some time, meaning in a home office. I am aware that there may be some tax benefits for self-employed individuals working from home, but I am unsure of the specific options available to me.
My current situation is as follows: I use a separate room in my apartment exclusively for my professional activities. I work on projects for my clients there daily. Additionally, I have made some small purchases for my home office, such as a new desk chair and a printer.
My concerns are that I am not sure if I have taken advantage of all possible tax benefits and if there are further opportunities to optimize my tax situation. I also wonder if I can deduct the costs of the purchases for my home office from taxes and if there are other aspects I should consider in my tax return.
Therefore, my question to you is: What specific tax benefits are available to self-employed individuals working from a home office and how can I make the most of them? Are there specific expenses that I can deduct from taxes and are there any other tips to optimize my tax situation?
Thank you in advance for your support.
Kind regards,
Leonie Büchner
Dear Mrs. Büchner,
Thank you for your inquiry regarding the tax benefits for self-employed individuals working from home. It is very important to be informed about the possibilities of tax optimization in a home office in order to not miss out on potential tax advantages. In your case, as a self-employed graphic designer, there are indeed some points that you should consider when filing your tax return.
First of all, it is positive to hear that you use a separate room in your apartment exclusively for your professional activity. This room can be claimed as a home office if it represents the center of your professional activity. In this case, you can deduct the costs for rent, electricity, heating, cleaning, furniture, office supplies, and similar items proportionally from your taxes. However, please note that the home office generally cannot exceed 50% of the total living space.
Furthermore, you can claim the costs for purchases for your home office, such as the new desk chair and printer, as business expenses. These purchases ultimately serve the purpose of carrying out your professional activity and are therefore tax deductible.
Additionally, you can also deduct other expenses related to your self-employment from your taxes. These include costs for professional literature, further education, telephone and internet expenses, insurances, marketing expenses, and similar items.
To optimize your tax situation as best as possible, I recommend collecting and keeping all relevant receipts and documents carefully. Keep a detailed record of your income and expenses and create a detailed profit and loss statement. Take advantage of the opportunity to consult with a tax advisor to ensure that you maximize all available tax benefits.
In summary, self-employed individuals working from home have access to various tax benefits that should be utilized. By deducting home office expenses, purchases, and other business expenses, you can reduce your tax burden and optimize your financial situation.
I hope this information was helpful to you and I am available for any further questions. Thank you for your trust and best wishes for your self-employment in a home office.
Sincerely,
Zofia Schulz
Tax Advisor
