Professional costs (travel and meals) are deductible from income tax either on a lump sum basis or for their exact amount. We are talking about real costs. How to choose between the two deduction methods?
The pre-filled declaration forms have already been in your mailboxes for more than 15 days and the online declaration service has been available since April 12. While nearly 2.4 million taxpayers have declared their income remotely, perhaps you have not yet tackled it. In this case, and if you are an employee, you will notice that the tax administration has applied for you a flat-rate reduction of 10% on your income tax, for your business expenses. Travel, meal or training costs … all employees are entitled to it, up to a limit of 12,183 euros (in 2017). The reduction is automatically calculated on the basis of the declared income. But if your expenses actually borne exceed this threshold, you can decide to declare your professional expenses for their actual amount. However, you will lose the benefit of the 10% flat-rate allowance.
To be deductible, your expenses must be essential for your professional activity and must be paid during the year of collection of the taxable income (in 2016 for your 2017 tax). They can also only concern certain expenses. The sums spent on travel between home and the office, meal expenses, professional travel or training costs when these are your responsibility are therefore deductible. Are also eligible for the reduction of real costs expenses related to the rental of business premises, when the employer does not make available to employees. Finally, certain charges for professional equipment, such as clothing specific to the profession (work overalls, blouse, uniform, etc.), can be deducted from tax if they are payable by you.
In order to calculate your transport costs between your home and your work, which are often the most important in the base of professional costs, the tax administration puts at your disposal a scale of mileage costs. You must then report the total amounts on your form n ° 2042, in boxes 1AK to 1DK. You must also detail all of your expenses to the taxman on an explanatory note which you will attach to your declaration form. If you do not need to attach your supporting documents, you must keep them for at least 3 years. A period during which the tax administration may request them. So keep all invoices, receipts, etc.