Travel and laundry expenses may need to be reconsidered | Talking Tax

I also stopped working briefly at the end of March and then worked from home for a month.

Will this affect how much I can claim in tax deductions?

Firstly, as JobKeeper is paid to you via your employer, all payments you receive come in the form of salary or wages - including any top-up payments.

These are all classified as assessable income, meaning you may have to pay tax on them

To answer your second question, it's important to remember the three general rules that allow you to claim a tax deduction.

Firstly, you must have spent the money and not have been reimbursed for the expense.

Secondly, it must relate directly to earning your income.

Thirdly, you need to have some form of substantiation for the claim, such as a receipt.

Additionally, as you worked from home this year there are two further expenses, travel and laundry, that you may need to reconsider.

TRAVEL EXPENSES

Let's take a look at travel expenses.

Travel to and from home and work is not typically deductible and this has not changed due to COVID-19.

So, if you were working from home but briefly went into work, this travel would not be deductible.

Travelling as part of work (such as from one work location to another work location) can usually be claimed as a tax deduction.

However, if COVID-19 has prevented you from travelling at all, including between work locations, you won't have incurred these expenses.

LAUNDRY EXPENSES

Laundry expenses may also be reduced as a result of working from home, and if you are not paying for the service, you can't claim the expenses as a tax deduction.

WORKING FROM HOME

Your working from home expenses may be greater this year and you'll need to consider the most suitable method to claim these expenses for you.

You may find last month's Talking Tax article that discussed the ATO's new 80 cents per hour method of calculating these deductions helpful when submitting your tax return.

If you're unsure about whether or not you should be claiming expenses as deductions, contact the Findex team on Albury@findex.com.au.

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All opinions, conclusions, forecasts or recommendations are reasonably held at the time of compilation but are subject to change without notice. Findex assumes no obligation to update this material after it has been issued. You should seek professional advice before acting on any material.