Tax tip: Study deductible despite office workstation

Improvements to the deduction of income-related expenses for the workroom came into force in 2023.

Whereas working in a home office was the exception before Corona, switching between the office and the workplace at home is now the norm for many employees.

Up to and including 2022, an unrestricted income-related expenses deduction for the associated costs was only possible if the study formed the centre of the entire business or professional activity and no office other than the study in the home was available.

This so-called teacher rule meant that only a few employees or self-employed persons could claim the costs of a home office for tax purposes. However, far-reaching improvements to the deduction of income-related expenses for the study were adopted in the Annual Tax Act 2022.

Since 1 January 2023, the unrestricted deduction of income-related expenses only requires that the study forms the centre of the business or professional activity. An existing office at the employer's does not have a detrimental effect on the full cost deduction.

Those who do not want to determine and record the individual expenses for the workroom are given the option of deducting the income-related expenses at a flat rate of 1,260 euros for the calendar year.

However, the prerequisite for this deduction of income-related expenses is still that a workroom is available in the first place. The tax office only recognises a study if it is used almost exclusively for work. Even a private library or a record collection can mean that it is no longer a study.

For these cases or if the workroom does not form the centre of the business or professional activity, the legislator already introduced the home office flat rate in 2020. This was supposed to expire on 31 December 2022 and has now been permanently discontinued. In addition, the home office allowance will increase to six euros per day. The maximum deductible amount was raised from 600 euros to 1,260 euros per year.