Updated: Oct 9
Understanding Home Office Expenses and Tax Deductions
If you work from home, you can claim certain expenses as tax deductions, including heating, cooling, lighting, cleaning, internet, phone bills, and office equipment. However, it's important to know what you can and can't claim, as well as how to calculate your deductions accurately.
Two Methods for Calculating Home Office Expenses
The first method is the fixed rate method, which allows you to claim a flat rate of 52 cents per hour for every hour you work from home. From 1 July 2022 the rate is 67 cents per hour. This method is simpler to calculate and can be used for all home office expenses. The second method is the actual cost method, which allows you to claim the actual expenses you incurred while working from home.
What Expenses Are Allowable and Non-Allowable
Allowable expenses include the costs associated with running your home office, such as electricity, gas, and internet. Non-allowable expenses include the costs associated with your home itself, such as mortgage interest, rent, and property taxes.
How to Claim Home Office Expenses with TaxFox
To maximise your home office tax deductions, you can use TaxFox, a mobile app to maximise tax refunds that simplifies the process of claiming home office expenses. With TaxFox, you can easily keep accurate records of your expenses throughout the year, including receipts, bills, and invoices. You can also keep a logbook of the hours you spend working from home and the tasks you complete during that time.
Examples of Home Office Expenses You Can Claim using TaxFox
Heating, cooling, and lighting expenses
Internet and phone bills
Office equipment, such as a computer, printer, and desk
Home office repairs and maintenance costs
Why You Should Use TaxFox to Maximise Your Deductions
Using TaxFox to claim your home office tax deductions has several advantages. First, it simplifies the process of record-keeping, which can save you time and reduce the risk of errors. Second, it ensures that you claim the correct amount and avoid any potential issues with the tax office. And finally, it maximises your deductions, which can help you save money on your taxes resulting in a bigger tax refund.
Claiming your home office tax deductions can be a valuable way to reduce your tax bill. By using TaxFox, you can simplify the process and maximise your deductions. So why not give it a try today and see how much you can save on your taxes?