|
Post by mom2kbs on Jul 4, 2020 20:02:31 GMT
Just pondering this question. My friends husband always works from home so they deduct a lot of things. I have been working from home since March. Wondering if I can deduct anything next year and if so what I need to be saving for it. I am going back to my office Monday . boo... I love working from home
|
|
|
Post by elaine on Jul 4, 2020 20:26:09 GMT
Just pondering this question. My friends husband always works from home so they deduct a lot of things. I have been working from home since March. Wondering if I can deduct anything next year and if so what I need to be saving for it. I am going back to my office Monday . boo... I love working from home You need to have separate office space in the house that is used only for work - you can’t do anything else in that space. The deductions can be complex. But here is an article that discusses in detail what you are asking about: money.usnews.com/money/personal-finance/taxes/articles/guide-to-home-office-tax-deduction
|
|
leeny
Pearl Clutcher
Posts: 4,627
Location: Northern California
Site Supporter
Jun 27, 2014 1:55:53 GMT
|
Post by leeny on Jul 4, 2020 20:27:41 GMT
Do you own your own business? If not, I am going to say no, since most all employee deductions have been taken away on our tax returns. My company is reimbursing us a standard amount for everyone for internet/mobile phone use while we've been home. We are still home through the end of July.
|
|
basketdiva
Pearl Clutcher
Posts: 3,611
Jun 26, 2014 11:45:09 GMT
|
Post by basketdiva on Jul 4, 2020 20:30:55 GMT
|
|
|
Post by revirdsuba99 on Jul 4, 2020 20:39:39 GMT
Probably not. Think of your savings by not commuting, and also the saved time!
|
|
|
Post by mom2kbs on Jul 4, 2020 20:40:17 GMT
thanks, I have a separate room that I use. I only use it for work. Just a thought. thanks for the feedback.
|
|
Deleted
Posts: 0
Apr 20, 2024 5:31:53 GMT
|
Post by Deleted on Jul 5, 2020 0:28:00 GMT
|
|
CeeScraps
Pearl Clutcher
~~occupied entertaining my brain~~
Posts: 3,822
Jun 26, 2014 12:56:40 GMT
|
Post by CeeScraps on Jul 5, 2020 0:41:01 GMT
I asked my dh about this. It is a lot of paperwork and keeping track of everything. Then, apparently when you put your house up for sale there is another mess that has to be taken care of. He explained it, I really tuned out because he went on and on and on about all that has to be done.
|
|
|
Post by jamielynn on Jul 5, 2020 1:40:36 GMT
You could, but our accountant has always told us not to and has done our business as well as personal taxes for many years.
I’ve worked at home 10+ years, full time, in an office only used for that. He said it’s nearly a guaranteed audit and it gets down to what percentage of heat or air conditioning is used exclusively for business use (so if others are in the home some or all of your workday).
The few hundred to maybe a few thousand hasn’t been worth the hassle for us, or any of my remote team of 70 but is discussed annually.
|
|
|
Post by AussieMeg on Jul 5, 2020 1:52:15 GMT
Obviously I have no idea how it all works in the US. But yes, in Australia you can claim a deduction for expenses incurred when working from home, such as electricity, gas, internet, phone, depreciation of office furniture, purchase of office equipment eg. printer, ink, paper etc. The quick method allows you to claim 52 cents per hour for every hour worked from home. Or you can do the "actual cost" method which involves a lot more work and record keeping. I read somewhere that from March onwards (during COVID) you can claim 80 cents per hour instead of only 52 cents. The few hundred to maybe a few thousand hasn’t been worth the hassle for us, or any of my remote team of 70 but is discussed annually. It must be very different there, because everyone claims the working from home deductions here. I don't know a single person who doesn't claim it. I know people who have been doing it since the 90s.
|
|
|
Post by smasonnc on Jul 5, 2020 1:58:26 GMT
I was a financial writer and did stories on this quite often. Bottom line, for a piddly amount of money it isn't worth it. It's a red flag for an audit in addition to the hassle of record-keeping, taxes, sale of your home, etc. There may be special dispensations this year with so many people working from home but you have to be able to justify the deduction if called upon.
My neighbor and her husband both ran their businesses from home. They each had a separate office and the bonus room upstairs was used for business only. They kept letting their kids use their computers and do homework in their offices until their accountant warned against it. You have to be very strict.
|
|
|
Post by Basket1lady on Jul 5, 2020 8:21:52 GMT
Obviously I have no idea how it all works in the US. But yes, in Australia you can claim a deduction for expenses incurred when working from home, such as electricity, gas, internet, phone, depreciation of office furniture, purchase of office equipment eg. printer, ink, paper etc. The quick method allows you to claim 52 cents per hour for every hour worked from home. Or you can do the "actual cost" method which involves a lot more work and record keeping. I read somewhere that from March onwards (during COVID) you can claim 80 cents per hour instead of only 52 cents. The few hundred to maybe a few thousand hasn’t been worth the hassle for us, or any of my remote team of 70 but is discussed annually. It must be very different there, because everyone claims the working from home deductions here. I don't know a single person who doesn't claim it. I know people who have been doing it since the 90s. Is is different here. It was a pain before, and then taxes were redone a few years ago and it became almost impossible to claim deductions for working at home. MY SIL has worked from home for almost 10 years. When she renegotiated her contract last year, she added in some reimbursement of expenses on her contract now that she can’t deduct them on her taxes.
|
|
hrod
Shy Member
Posts: 32
Jul 22, 2017 0:50:27 GMT
|
Post by hrod on Jul 5, 2020 13:02:22 GMT
Are you a W-2 employee? If you are, then no. There used to be a miscellaneous 2% deduction available, but they took that away.
If you are 1099, yes. There are two methods. Track expenses, deduct home depreciation (and recapture upon sale of said home) blah blah blah. Or, take the easy way out, and use the “simplified method” that you take based on square feet of your office. Truly a simple thing to do.
|
|
QueenoftheSloths
Drama Llama
Member Since January 2004, 2,698 forum posts PeaNut Number: 122614 PeaBoard Title: StuckOnPeas
Posts: 5,955
Jun 26, 2014 0:29:24 GMT
|
Post by QueenoftheSloths on Jul 5, 2020 13:28:28 GMT
I have a 1099 job that is always from home. This year the tax pro said I should claim something for home office. I said that I hadn't bought anything specifically for the job, that I did it on the computer we used for other purposes, in a room used for other purposes. He said that having what is considered a home business and claiming nothing would work as a red flag, and asked if there was absolutely anything I bought for working. The only thing directly related to the job was the expense of getting the taxes done. I had always done our own before starting that job. So he ended up deducting about 1/3 of the price of the tax work, because we do have other sources of income.
|
|
hrod
Shy Member
Posts: 32
Jul 22, 2017 0:50:27 GMT
|
Post by hrod on Jul 5, 2020 13:32:50 GMT
I have a 1099 job that is always from home. This year the tax pro said I should claim something for home office. I said that I hadn't bought anything specifically for the job, that I did it on the computer we used for other purposes, in a room used for other purposes. He said that having what is considered a home business and claiming nothing would work as a red flag, and asked if there was absolutely anything I bought for working. The only thing directly related to the job was the expense of getting the taxes done. I had always done our own before starting that job. So he ended up deducting about 1/3 of the price of the tax work, because we do have other sources of income. IF you used your office only for work, you could have taken the simplified method deduction too. It’s basically giving you an estimated deduction for utilities and home depreciation etc. If you used a cell phone and or land line in your work, you could take a portion of that. The same with internet service.
|
|
Rhondito
Pearl Clutcher
MississipPea
Posts: 4,657
Jun 25, 2014 19:33:19 GMT
|
Post by Rhondito on Jul 5, 2020 14:42:09 GMT
An easy thing to take advantage of is letting your auto insurance company know you're working from home instead of commuting.
It's saved me about $40/mo.
|
|
Dalai Mama
Drama Llama
La Pea Boheme
Posts: 6,985
Jun 26, 2014 0:31:31 GMT
|
Post by Dalai Mama on Jul 5, 2020 14:53:41 GMT
The US has their own tax laws but, for any Canadian reading this, the answer is yes If you are required to work from home and you have an area of your house entirely dedicated to that purpose, you will be able to deduct a percentage of your household costs as employment expenses.
|
|
pinklady
Drama Llama
Posts: 5,480
Nov 14, 2016 23:47:03 GMT
|
Post by pinklady on Jul 5, 2020 15:19:25 GMT
Probably not. Think of your savings by not commuting, and also the saved time! This! I used to fill my tank every 14 days. The last time I got gas was 4/20/20 the day oil prices went negative. I still have half a tank so I’m not planning to get gas any time soon.
|
|