How the deduction of work-related expenses for the use of a home office on health grounds is to be assessed is illustrated below using a specific legal dispute:
Case in dispute
In the year in question, a jointly assessed married couple deducted the costs of using a home office from their income from employment. The spouses justified the deduction on the grounds that the plaintiff, due to health limitations, was unable to work continuously at the workstation provided by her employer. Instead, the use of a home office considerably eased her daily life and helped to prevent serious health consequences. The plaintiff further emphasised that the requirements for the deduction of work-related expenses for a home workplace set out in the EStG do not need to be met in every case. Rather, they serve to make the term "home office" objectively tangible.
View of the tax office – no deduction of work-related expenses
The tax office responsible for the married couple took the view that a deduction of work-related expenses for the home office did not apply, because firstly it did not constitute the centre of the plaintiff's entire professional activity, and secondly another workstation was available to her at the company. The legal requirements for a deduction of work-related expenses for the home office were therefore not met.
Decision: FG Berlin-Brandenburg
The ruling (judgment of 29 September 2022, 5 K 5138/21) of the FG Berlin-Brandenburg held that an employee who uses a home office to avoid health risks may deduct the costs incurred for tax purposes. The deduction is, however, capped at a maximum amount of EUR 1,250 per calendar year.
Note: BFH case law on noise pollution at the workplace
In an earlier case before the BFH (judgment of 6 November 2014, VI R 4/14) it was already decided that an operational workstation is deemed unreasonable if certain noise levels are exceeded. If, in such a case, consequential health damage is threatened, in particular where specific pre-existing conditions exist, the workstation is to be regarded as unsuitable.
No appeal lodged
Although the FG Berlin-Brandenburg admitted an appeal in the present legal dispute, the tax office did not pursue it. This may be interpreted as meaning that the tax administration shares the view of the FG Berlin-Brandenburg in such cases.
Taxpayers with similar cases can therefore rely on the ruling of the FG Berlin-Brandenburg. However, an equally favourable outcome cannot be assured.
Note: New legal position
Finally, it should be noted that the ruling of the FG Berlin-Brandenburg was issued under the previous income tax law. Following the adoption of the Annual Tax Act 2022, a deduction of work-related expenses for the business office under § 4 Abs. 5 Satz 1 Nr. 6b EStG may be made on the basis of a statutory flat rate.
Frequently asked questions
Frequently asked questions
Can a home office be deducted for tax purposes on health grounds?
Yes. The Fiscal Court of Berlin-Brandenburg (judgment of 29 September 2022, 5 K 5138/21) ruled that employees may deduct the costs of a home office as income-related expenses if its use is required for health reasons. This applies even where the employer generally provides a workplace. In the case decided, the deduction was capped at the maximum amount of EUR 1,250 per year.
What requirements does the tax office typically impose for deducting a home office?
The tax office generally requires that the home office either forms the focal point of all professional activity or that no other workplace is available. If these conditions are not met, the deduction of work-related expenses is, in principle, denied. However, according to fiscal court rulings, health-related reasons may justify an exception.
When is a workplace at the employer's premises considered unreasonable due to noise pollution?
According to BFH case law (ruling of 6 November 2014, VI R 4/14), a workplace at the employer's premises is deemed unsuitable if certain noise levels are exceeded and consequential health damage is threatened. This applies particularly in cases of specific pre-existing conditions of the employee. In such cases, relocating to a home office can be recognised for tax purposes.
Can taxpayers rely on the ruling of the FG Berlin-Brandenburg?
Yes. Since the tax office did not file an appeal, it can be assumed that the tax authorities accept the decision. Taxpayers in comparable cases can therefore rely on the ruling. However, an identical positive outcome is not guaranteed, as each case must be assessed individually.
What is the legal situation for the home office (häusliches Arbeitszimmer) following the Annual Tax Act 2022?
The Annual Tax Act 2022 amended § 4 Abs. 5 Satz 1 Nr. 6b EStG. Since then, a deduction of income-related expenses for a home office is also possible based on a statutory annual lump sum. The ruling of the FG Berlin-Brandenburg was issued under the previous legal framework, but its principles regarding medical necessity remain relevant as an interpretive guide.