COVID-19 has changed our lives in many ways, and some of the changes have tax implications. Here is basic information about a common situation.
Working from home.
Many employees have been told not to come into their workplaces due to the pandemic. If you’re an employee who “telecommutes” — that is, you work at home, and communicate with your employer mainly by telephone, videoconferencing, email, etc. — you should know about the strict rules that govern whether you can deduct your home office expenses.
Unfortunately, employee home office expenses aren’t currently deductible, even if your employer requires you to work from home. Employee business expense deductions (including the expenses an employee incurs to maintain a home office) are miscellaneous itemized deductions and are disallowed from 2018 through 2025 under the Tax Cuts and Jobs Act.
However, if you’re self-employed and work out of an office in your home, you can be eligible to claim home office deductions for your related expenses if you satisfy the strict rules.
We can help
We can assist you with advice about whether you qualify for home office deductions, and how much of these expenses you can deduct. We can also answer questions about other tax issues that you encounter as a result of COVID-19.
Contact us with questions.