The Home Office Deduction 2020 - Coronavirus
One of the significant social side effects of the Coronavirus pandemic is a wave of people suddenly working from home. You could be wondering if you can get a nice tax break under the Home Office Deduction. There have been so many tax changes due to COVID-19. Did the CARES Act change any of the rules surrounding the home office deduction?
Under the tax rules prior to January 1, 2018, millions of more people would be able to take the home office deduction for 2020. Unfortunately, if you are a W-2 employee, you are no longer able to benefit from the home office deduction, even if you work from home full time. Currently, only those self-employed can benefit from the home office deduction.
The home office deduction was misused in the past, which made it an IRS Audit red flag. According to the IRS, your home office needs to be a room or separately identifiable space, used regularly and exclusively for conducting business, and the principal place of your business. Most times, the home office was used for other living purposes so tax professionals were not surprised this deduction was eliminated for W-2 employees.
If you are self-employed and want to ensure you will receive the benefit of this deduction, please reach out to your trusted professional at Findon & Associates. To learn more about our services, please click here or get in touch with us by clicking here.