By MoneyBees
Work out the extra electricity, phone and WiFi costs IRAS lets you claim when your employer requires you to work from home, and the tax the claim saves you.
Yes, if your employer requires you to work from home and does not pay the costs back. IRAS lets you claim the extra electricity and telecom charges, and WiFi set up to work from home, as an employment expense.
Compare your bills before and after you started working from home. IRAS's example: a S$50 bill that becomes S$60 lets you claim the S$10 difference. Net off any U-Save rebate first.
Only if you set it up so you could work from home. You can then claim the monthly fee even if you also use it privately. WiFi you already had cannot be claimed, and installation or connection fees never can.
No. IRAS treats furniture, computers and peripherals as capital, so they are not deductible employment expenses. Water and gas are private and cannot be claimed either.
IRAS accepts an equal split of shared bills among the people working from home. In its example, a S$170 claim becomes S$85 each for a couple.
Yes. IRAS says allowances from employers, such as a monthly WiFi allowance, are taxable as part of your employment income. A reimbursement of costs you spent for work is not taxable, but you cannot claim it as well.
In your tax return, under Employment Income and Expenses, select Add New and then Employment Expenses. Keep complete records for 5 years; IRAS does not accept estimates.
The claim comes off your income, so it saves the claim times your top tax rate. At a 7% top rate, a S$360 claim saves S$25.20.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).