Tax Deductions - Engineering Professionals
If you are an engineering professional, you are eligible for tax deductions related to your work. Some examples of these expenses are:
Professional memberships and subscriptions: You can claim the cost of joining or maintaining your membership to a professional association relevant to your work as an engineer. You can also claim the cost of subscribing to journals, magazines or newsletters related to your work.
Self-education expenses: You can claim the cost of undertaking a course of study or training directly connected to your current work as an engineer, such as a postgraduate degree, a certificate or a short course. You can claim expenses such as tuition fees, textbooks, stationery, travel and internet access. However, you cannot claim the cost of a course designed to get you a new job or a different field of work, even if it is related to engineering.
Home office expenses: You can claim the cost of using your home as a place of work if you have a dedicated work area, such as a study or a spare room, and you work from home regularly. You can claim expenses such as electricity, gas, phone and internet bills, as well as depreciation of equipment and furniture. You can use either the actual cost method or the shortcut method to calculate your deductions. However, you cannot claim the cost of rent, mortgage interest, rates or insurance for your home.
Travel expenses: You can claim the cost of travelling for work purposes, such as visiting clients, attending meetings or conferences, or going to different work sites. You can claim expenses such as fares, tolls, parking fees, accommodation and meals. However, you cannot claim the cost of travelling between your home and your regular workplace unless you have to carry bulky tools or equipment that are essential for your work and that your employer does not provide or store at your workplace.
Tools and equipment related to the job, such as laptops and other specialist equipment. Bags or suitcases to carry equipment to and from work.
These are some of the common deductions that engineering professionals can claim. However, there may be other deductions that apply to your specific circumstances. To find out more, you can contact our team at MD Business Accountants. Remember to keep records of all your work-related expenses and receipts for at least five years after you lodge your tax return.