Taxes Taxes Taxes

Is the government conspiring against the American people? They removed the advantages of working from home just prior to everyone working from home. Here are three sources if your interested in your ability to take a tax deduction for working from home. (This is not tax advise; this is posted for educational purposes only.)

Can I Take a Tax Deduction for Working From Home During Coronavirus?

Prior to the Tax Cuts and Jobs Act of 2017, salaried workers could claim home office expenses via the miscellaneous itemized deduction. But now, that deduction is off the table, and so, too, is a home office if you’re not self-employed.

…you might actually have a larger tax bill on your hands if you’ve been doing your job from a remote location in another state, so prepare for that possibility to avoid a financial crunch when your 2020 taxes come due.

Source: Fool.com

The Home Office Deduction 2020 In Time Of Coronavirus

If the 2016 election had gone another way, under the previous IRS provisions, millions of more people would be able to take the home office deduction in 2020. Sadly, this valuable tax break was severely limited in the TCJA, aka the Trump tax plan. The short version is that if you are a W-2 employee, you are no longer able to benefit from the home office deduction, even if you work from home full time. Currently, you need to have self-employment income to benefit from home office deduction.

Source: Forbes.com

Qualifying for a home office tax deduction during the coronavirus crisis

Q1. Who can take a home office deduction or claim home office expenses?

There are two situations where you might be able to take the home office deduction or claim home office expenses. If you are:

An independent contractor or self-employed, you’ll be able to claim the home office deduction. Review the next question for details.
An employee who falls into one of the below employment categories; you can take an unreimbursed employee expense deduction. Skip ahead to question 4 below for details.
* Armed Forces reservist (a member of a reserve component)
* Qualified performing artist
* Fee-basis state or local government official
* An employee with impairment-related work expenses

Source: HRBlock.com

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