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Can You Deduct Your Work From Home Expenses?

Can You Deduct Your Work From Home Expenses?

February 20, 2024

The pandemic has changed the way a lot of Americans work. Working remotely from home is the new normal for many. If you’re one of them, you may have wondered if you should consider claiming the home office deduction on your taxes. Therefore, we thought we’d pass along some information to help determine whether this may be an option for you.  

In short, employees who receive a paycheck or a W-2 exclusively from an employer are not eligible for the deduction, even if they are currently working from home. However, suppose you own your business or do freelance work principally out of your home. In that case, you may qualify for the home office deduction.

According to IRS instructions for business use of your home, your home must be your “principal place of business” for your trade or business to qualify to deduct expenses for the business use of your home. If you have another “fixed location where you conduct substantial administrative or management activities,” you do not qualify for the home office deduction.

The IRS provides a simple flow chart to help determine eligibility:

Also attached is an additional resource from the IRS to help clarify the home office deduction.

We recommend consulting your tax professional if you are considering taking the home office deduction or want an opinion on your specific circumstances.