How a home office can increase your tax refund

Many salaried employees assume that home office deductions are strictly reserved for business owners. However, if you work from home, even part of the time, the law allows you to claim back a portion of your living expenses.

Sections 11(a) and 23(b) of the Income Tax Act outline very specific rules for this deduction. To qualify, you must meet the following criteria:
* You must have a dedicated room or space used exclusively for work. If you spend your week working from the dining room table, SARS will disqualify your claim because the space is multi-purpose.
* Salaried employees must perform more than half of their total working hours in this dedicated space.

If you meet these criteria, you can claim a pro-rata portion of your household running costs. This includes expenses such as rent or bond interest, municipal rates, electricity, and cleaning costs. You calculate your claim by dividing the square meterage of your office by the total square meterage of your home. SARS frequently requests proof during verification, so you must be prepared to submit a floor plan, photographs of the space, and a letter from your employer.

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Disclaimer:This article is for informational purposes only and does not constitute financial or tax advice, and is not exhaustive. Tax laws are complex and subject to change. We strongly recommend consulting with our registered tax practitioner to address your specific circumstances.