Internet and Telephone Costs in the Tax Return – Check How You Can Deduct Them!

Since the outbreak of the coronavirus pandemic, many people worldwide, including in Germany, have moved their work to home. This means that private devices such as phones and computers are also being used for business tasks. Did you know that you can declare certain expenses on your tax return? This applies to internet costs and phone costs.

How can telecommunications costs be deducted from taxes in Germany? What amounts can be named? Who can claim the deduction? Learn about the most important questions today and see how much you can save – welcome!

Internet and phone costs tax – Who can benefit?

A tax refund for phone and internet costs can be applied for by individuals who work from home or use private devices for professional purposes daily.If you use your personal smartphone or your internet connection for calls and business tasks, you can Wenn Du also Dein persönliches Smartphone oder Deinen Internetanschluss für Anrufe und geschäftliche Aufgaben nutzt, kannst Du claim part of your internet and phone costs from your taxes as deductible expenses if your employer does not reimburse you for these costs. expenses as deductible expenses.

Deduct phone and internet in Germany from taxes – two options

How can you deduct internet costs and phone costs? The German tax system currently provides two possibilities.

• Phone cost flat rate – a flat rate means you can deduct 20% of the total costs up to a maximum amount of €20 per month or €240 per year from your taxes.
• Actual phone costs in the tax return: Tax refund for phone and internet costs, if you do not choose the flat rate, you can submit bills or receipts for the amounts you paid. However, do not forget to list these items individually in your tax return. Importantly, in this case, phone and internet can be deducted from taxes without limitation. The refund is in no way limited by the amount.

Tax declaration for phone costs and internet costs in Germany – flat rate or receipts? Which should I choose?

Having learned about the two options, you may now wonder if it is better to deduct phone costs as a flat rate or perhaps through receipts? Let’s take a closer look at both options.

Flat rate and German tax refund for internet and phone costs in the tax return

The advantage of this solution is that you don’t have to make too much effort. If you choose phone and internet costs at a flat rate, you do not have to prove the extent to which you used your private devices for work.

This is undoubtedly the greatest advantage of this solution: you can deduct phone costs without proof from taxes and you don’t have to worry about additional formalities – provided you actually worked from home or conducted business calls with your private smartphone.

However, this solution offers not full flexibility in tax refunds for internet and phone costs in the tax return – the limitation is that) only up to 20% of your monthly expenses are considered deductible by the German tax office. The limit is, as mentioned, €240 – you cannot get more back using this form of deduction. seen as deductible. How best to deduct flat-rate internet and phone costs from taxes?

Choose the 3 months in which your bills were highest . Alternatively, you can also use anannual average. For example: Your bills

were highest in January, April, and October

• The sum of the three bills is: €50 + €47 + €52 = €149, €149/3 months * 20% = €9.93,,
• €9.93 * 12 months =
• rounded up to €119.16
• In practice, this means you can expect a refund for phone and.

internet costs amounting to €119.16, since this is below the set limit of €240. Deduct internet and phone costs via receipts – the limitation is that As you already know, there is the alternative to the flat rate of deducting phone and internet costs via receipts and other documents as proof of your expenses on your tax return

from your taxes.

Is this worthwhile? The greatest advantage of this option is that you can deduct an unlimited amount of your expenses for using networks and phones for professional purposesfrom your taxes.

telecommunications costs exceed 20% of your expenses for the professional part.This is particularly worthwhile if you estimate that your On the other hand, the deductible phone costs

must be documented, accurately calculated and submitted to the German tax office. How does it work in practice? You document all calls (private and professional) with date, time, duration, and participants and present the selected 3 months.   

• You determine the share of network or phone usage for business purposes using an individual logbook or the recorded call duration.
•     Du bestimmst den Anteil der Netz- oder Telefonnutzung für geschäftliche Zwecke anhand If, for example, 40% of all calls were made for professional purposes, you can deduct 40% of the total amount on your bill

Internet and phone costs tax return for self-employed – what does it look like?.

If you are self-employed,

you can also claim refunds for internet and phone costs in your phone costs , which arise when performing your activities. The deduction principle is similar to that of employees. You can claim these costs – the limitation is that who work from home or use private devices for professional purposes daily.as income-related expenses in your tax return – however, it is required that you separate your private and professional calls. If you have separated them, calculation is not a big problem – otherwise, your own assessment must be substantiated by records of calls over a period of three months as evidence. If you use 90% of your devices or network for work, you can deduct the operating costs in full

. However, you must be able to prove this – otherwise,the German tax office may assume that the ratio is 50% , and that is the maximum you can deduct from your taxes. Do you need help with your tax matters in Germany? Consult aprofessional tax advisor

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