Here’s how you can claim the home-office tax deduction
- Home offices and supplies may be written off under the deduction
- Not everyone who works remotely is not eligible for the deduction
- The tax deadline is April 18, 2023
CHICAGO (NewsNation) — Tax Day is 18 days away, and if you’re racing to file your federal tax returns and are self-employed, you still have time to snag some extra deductions.
More Americans shifted to work from home due to the coronavirus pandemic. If you’re one of them, there are still home-office items you can claim.
According to the Internal Revenue Service, those who are self-employed, gig workers or independent contractors and work out of their homes are eligible for the home-office tax deduction. People who work remotely but get a W-2 tax form from their employer don’t qualify.
There are two routes someone can take: a simplified option or a regular method.
With the simplified option, you will want to deduct $5 per square foot up to 300 square feet of the space of the home used for business to compute the business use of home deduction. With the regular method, you’ll need to measure the business use of home deduction by dividing the expenses of operating the home between personal and business use.
“You may deduct direct business expenses in full, and may allocate the indirect total expenses of the home to the percentage of the home floor space used for business,” according to the IRS.
Americans can also write off home office supplies like computers, printers and phones. It’s important to remember you must have receipts.
2022 is the last year Americans can deduct 100 percent of business-related meals, including tax and tips. In 2023, you’ll only be able to write off 50% of work meals.
Americans are urged to talk to a tax professional. You can also use Form 8829 to figure out the expenses you can deduct.
The tax deadline is April 18, 2023.