Examining the Necessary Elements in a COVID-19 Tax Documents
In the evolving landscape of remote work, understanding the financial implications for employees working from home is crucial. Two key factors to consider are the Home Office Allowance and the Employee Flat Rate in Germany.
**Home Office Allowance and Employee Flat Rate: An Overview**
Since 2023, employees in Germany can claim a Home Office Allowance of €6 per day for up to 210 days per year, resulting in a maximum deduction of €1,260 annually (€6 × 210 days) [1][3][5]. This allowance is granted automatically if you meet the conditions, without the need for receipts.
The Employee Flat Rate, often referred to as the Advertising Cost Allowance, is €1,230 per year as of 2025 [1]. This amount is automatically deducted from your taxable income by the tax authorities, regardless of your actual work-related expenses.
**Interaction between the Allowances**
The Home Office Allowance is treated as part of your income-related expenses for tax purposes in Germany [3]. The €1,230 Employee Flat Rate is applied first. If your total work-related expenses (including the Home Office Allowance and others like travel costs) remain below this amount, you automatically receive the €1,230 deduction without needing any proof [1].
However, if your total work-related expenses exceed €1,230, you report all eligible expenses—including the Home Office Allowance—when filing your tax return. You can then deduct the full amount of your proven expenses up to any applicable maximums (e.g., €1,260 for Home Office) [1][3].
**Practical Example**
For example, if you worked 180 days from home and incurred €800 in other work-related expenses, your total expenses would be €1,880 (€1,080 Home Office Allowance + €800 Other Expenses). You can claim €1,880 when filing your return, provided you keep the relevant receipts for the additional €800 (beyond the Home Office Allowance, which does not require receipts) [1][3].
**Key Points**
- The Home Office Allowance is included in your income-related expenses. - No receipts are needed to claim the Home Office Allowance; receipts are necessary for other expenses if you go beyond the flat rate. - Employees who do not reach the €1,230 flat rate with their expenses still get the standard deduction automatically. - Those with higher work-related costs, especially due to home office, can get a larger deduction by itemizing claims.
The system encourages flexibility: employees with modest expenses benefit from the automatic flat rate, while those with significant expenses can further reduce their taxable income by providing documentation [1][3].
[1] Lohnsteuerhilfeverein Vereinigte Lohnsteuerhilfe (VLH) [3] Christina Georgiadis, Spokesperson for the Lohnsteuerhilfeverein Vereinigte Lohnsteuerhilfe (VLH) [5] Bundesfinanzministerium (Federal Ministry of Finance)
Maintaining personal-finance records is essential to control the impact of working from home on income taxes in Germany. The Home Office Allowance, amounting to €1,260 yearly, is a crucial aspect of this, providing an automatic deduction of €6 per day for up to 210 days, but it's important to note that no receipts are required. On the other hand, the Employee Flat Rate, or Advertising Cost Allowance, at €1,230 yearly, is applied first, with the excess work-related expenses, like travel costs, being deductible upon filing taxes, along with the Home Office Allowance, if the total expenses surpass the flat rate.
