Measures taken in 2020 to ease the taxation of telecommuting allowances paid to workers have been renewed. Those received in 2021 are exempt from tax up to a limit of 580 euros.
The fight against the Covid-19 epidemic has led to a massive transition to remote work for two years, forcing a large number of employees to incur expenses in order to do their work from home. To help them cope, some employers have chosen to pay fixed allowance for remote work expenses to their employees. As in 2020, those who receive a salary in 2021 are exempt from tax up to 2.50 euros per day of remote work, but cannot exceed 55 euros per month and 580 euros for the whole year.
You do not choose to deduct actual costs
If you do not choose to deduct your actual expenses this year, you will need to verify that the amount of your wages pre-filled on your tax return does not include the exempt portion of your benefits received last year. A priori, this will be the case because your employer only disclosed to the tax authorities your taxable wages at the beginning of the year, but not your employment allowances. Otherwise, you will correct the prefilled amount based on payrolls.
Please note that if your telecommuting allowances exceed the exemption limit you are eligible for (this depends on the number of days or months of teleworking in 2021), a portion of the excess is not tax exempt. Therefore, you will have to add it to the pre-filled salary on your return. However, you may be eligible for a tax exemption on this excess portion of your benefits if you can prove that you used it to fund telecommuting expenses. In this case, you will not declare it.
For example, you received €800 in telework allowances and worked from home for five months in 2021. They are exempt from taxes up to a limit of €275 (€55 × 5 months). The remaining €525 is tax-deductible and you will generally have to add it to your pre-filled salary. But if you can prove that you actually incurred telework expenses of at least €800 last year, your benefits are fully tax-exempt and you do not need to declare them. On the other hand, if you can justify only 700€ of remote work expenses, you will have to declare 100€ of extras for which you have no justification (800€ – 700€) as they are still taxable.
Good to know. If your allowances for remote work expenses were paid to you upon presentation of supporting documents (and not in the form of lump-sum allowances or reimbursements), they are completely exempt from payment, regardless of their amount. They do not need to be listed on your tax return.
You choose to deduct actual costs
If you choose to deduct your actual expenses, your fixed allowance for remote work on the 2021 are also exempt from tax up to a limit of 2.50 euros per day, 55 euros per month and 580 euros per year. You will then have the choice between three solutions:
- Do not declare your allowances and deduct from your salary only professional expenses paid in 2021, other than those incurred in connection with remote work.
- Declare the tax-free portion of your benefits and deduct your telecommuting expenses paid in 2021 that are not covered by the exempt portion of your benefits, in addition to deducting your other professional expenses.
- Declare all your premiums and deduct from the salary of all your expenses on a remote work, paid in 2021, in addition to the deductible of your other professional expenses.
So, taking the previous example, you cannot declare the €800 fixed benefits you received in 2021 if you choose not to deduct any teleworking costs. Or declare the non-taxable part of your benefits, i.e. 575 euros, and deduct your telework expenses not covered by the 275 euros of exempt benefits. Or even declare all €800 in allowances and deduct all your telecommuting expenses.
Good to know. Telecommuting costs deductible from wages are communication and mobile phone costs (subscription costs, subscription to an Internet offer, communication and purchase of a mobile phone, etc.), professional equipment (furniture, computer equipment, consumables). , ink cartridges, reams of paper, etc.), travel between home and work, and professional use of private premises (electricity, water, heating, insurance, etc.). On the other hand, food expenses are not allowed as a deduction for teleworking days. Similarly, child care expenses are not deductible from professional expenses, even if both parents work remotely.