Deductions for Professional Expenses in Tax Declarations in Times of Corona - What is Possible?

The Corona pandemic has led to significant changes in the daily work lives of many people. Since commuting and external meals have been replaced by home office and home-cooked meals, the question arises as to which Corona-related job expense deductions are possible in this year's tax declaration. The cantons handle the answer to this question differently.

Corona job expense deductions

As part of the measures to combat the Corona pandemic, employees were encouraged to work from home whenever possible. This has led to significant changes in the daily work lives of numerous individuals. On one hand, commuting and canteen meals were eliminated, and on the other, a home office had to be set up and meals cooked at home. What implications do these facts now have for the job expense deductions in the tax declaration of non-self-employed earners?

The answer to this question varies from canton to canton. A majority of cantons have decided to allow the usual job expense deductions that would have been possible without the Corona measures. This procedure is intended to make filling out the tax declaration easier. Moreover, in some cantons, the costs for the use of a private vehicle can be deducted without having to prove why the use of public transport would be unreasonable. Some cantons also allow separate deductions for the use of a private workroom (home office).

Deduct home office costs from taxes, here’s how!

For a better understanding, we explain how the cantons of Basel-Stadt, Bern, and Zurich handle the situation.

Canton Basel-Stadt

The Canton of Basel-Stadt allows deductions for the use of a private workroom under certain conditions. This is the case if the taxpayer needs to perform a significant part of their work from home regularly, the employer does not provide suitable premises, and the workroom is a separate room mainly used for professional purposes. Additionally, it is usually simpler to deduct those costs that would have been incurred if working at the employer's premises. Exceptionally, costs for the use of a private vehicle (car) can also be claimed, without having to prove that public transport is unreasonable. If costs for third-party childcare have been incurred, they can be claimed as before, provided that the legal conditions are met.

Canton Bern

To accommodate the special circumstances, the Canton of Bern has clarified the practice for granting a commuting cost deduction. Taxpayers who commute by public transport can claim the actual costs incurred. Annual subscriptions, which could not be utilized as planned due to the measures, can still be fully deducted. Taxpayers who drove to work by car between March 1 and December 31, 2020, are allowed to deduct the expenses for these journeys. The proof that a trip by public transport is not feasible is exceptionally waived. The amount of the commuting deduction remains capped at CHF 3000 for direct federal tax and CHF 6700 for cantonal and municipal taxes. No changes for other job-related expenses (e.g., external meals, third-party childcare).

Canton Zurich

In the Canton of Zurich, non-self-employed earners can claim their job expenses (travel costs, additional costs of meals, lump sum deductions for other job expenses, and training and education) in the 2020 tax declaration as they would have been without the measures to combat the Corona pandemic. This means that job expenses are not reduced due to Corona-related home office days. In return, however, no special deductions for home office costs can be claimed. This simplified procedure is intended to make filling out the tax declaration easier for taxpayers.

Is your canton not listed? Find out about the permissible Corona job expense deductions on your canton's website. An overview of the cantonal resources can be found HERE.

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