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When is a home office allowable as a deduction?

On Behalf of | Feb 3, 2023 | Tax Controversies |

Like many other professions, you may have migrated more to working at home over the past few years. If you have spent most of your working day at home, you may have an allowable tax deduction on the horizon.

A home office is something the IRS allows those working remotely to deduct from their taxes. Learn more about the rules, however, so your return does not face scrutiny because of it.

Do you have a dedicated space?

Your couch does not count as a home office deduction. To claim this, you must have a dedicated room or area cordoned off where you sit and work. Your tax return may ask you for the measurements of the space. You will also have to report approximately how much of your work takes place in this area.

If your home office doubles as any other space, the IRS may disqualify it as a deduction. You should make every effort to not only make it look and function like a home office. Take out anything that implies the space has a use that extends outside of your business, such as video game consoles or personal financial records.

What else can you write off with a home office?

A home office sometimes allows you to receive credits for other items. For instance, if you purchased items necessary to perform your job, such as a printer or keyboard, then you may write these off. However, you can only write these items off if you have a qualifying home office.

Should you worry about whether you can take certain tax deductions, you may wish to consult with a professional with experience in this area of the law.