10 Feb Can You Deduct Home Office Expenses from Your Taxes?
It is that time of year. Business is picking up for our CPAs in Boca Raton as tax time draws nearer. And we know that one of the big questions that our tax preparation and planning experts will be getting this year is, “Can I deduct expenses for my home office?”
That’s because millions and millions of Americans – including the staff at our Boca Raton CPA firm – spent a good part of their time last year working from home.
If you are you among the millions of people who worked from home in 2020 due to Covid-19 or are still working at home because of the pandemic, you undoubtedly had expenses associated with setting up your home office.
Who Is Eligible to Deduct Home Office Expenses?
Even if your employer provided a laptop and internet connectivity, you may have had to invest in a desk and ergonomic chair. Maybe you only needed to make minimal adjustments, like some organizational tools and a new lamp. Or maybe you were among those who had to call in an electrician to provide additional outlets for all your work tech.
Unfortunately, how much you spent isn’t the deciding factor.
As US News and World Report tell us, “Some people will be able to take a tax deduction for their home office expenses, but many will not. The law changed in 2018 and eliminated the home office deduction for people who work for an employer. You can only qualify for the home office deduction now if you’re self-employed. You’re not eligible if you’re an employee, even if you’ve been working remotely and had to set up an office in your home.”
That may be disappointing news to many of you. We are sorry to be the bearers of bad news. But maybe our talented tax accountants in Boca Raton can help you find other deductions you were not aware of. Contact us for more information.