Have you been working from home since your employer’s office closed?

If so, you do not get to claim the home office deduction, you are an employee.

Prior to 2018, certain employees could deduct the cost of home office expenses as unreimbursed employee costs included in miscellaneous itemized deductions, subject to the 2%-of-AGI threshold. But tax reform repealed this group of tax breaks.

The deduction is available to self-employed people or independent contractors who use a room or space in their home exclusively and regularly as their principal place of business. You don’t need to own your own home. Renters can also get the break.

There are two ways to figure the write-off: Allocate actual costs on Form 8829.Or use the simplified option. You can deduct $5 per square foot of space used exclusively for business, up to 300 square feet for a $1,500 maximum write-off. Self-employeds can also deduct office supplies and equipment on Schedule C

 

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