Tag: What can I claim at tax time

Working from home? This is what you can claim this tax time

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Just when you thought it was all over, parts of Australia are back under work from home orders with snap lockdowns. It’s obvious working from home is becoming more commonplace, so for tax purposes it’s important to know what you can claim for. You can deduct the running expenses of your home office.From the electricity you use for heating, cooling, and lighting to the depreciation of office furnishing, you can deduct the office related portions of these, providing you aren’t being reimbursed or compensated by your employer. How much can you claim?This depends on how the type of records you’ve kept throughout the year or how much time you want to spend calculating every last cent. There are three different methods you can use:– The actual cost– The shortcut method– The fixed rate method When you’re using your own personal phone and computer for work-related purposes, to claim the actual costs, you’ll need to figure out the percentage you use for personal use compared to office-related expenses. It can get quite complex to calculate the actual cost, so the ATO has introduced a special shortcut method for the period between 1 March 2020 to 30 June 2021. This allows you to claim 80 cents for each hour you worked from home. It may not give you the best tax refund, but it’s the easiest and fastest way to work it out. All you need is to keep a record of your hours working from home and a 4-week diary journaling your normal pattern of work… Read More