Working from home? It may be time to put the professionals at Jim Matthews CPA on speed dial!
Recent reports show that as many as 35.2% of US workers are working entirely from home. So what does this mean for their taxes and deducting their home office? Consider the following tips below, from Forbes:
- You are not self-employed just because you are working from home. If you are receiving a paycheck from an employer, and those wages will be reported to you and to the IRS on a W-2, you are an employee.
- You cannot deduct home office expenses if you are an employee. However, if you are self-employed, you can continue to deduct qualifying home office expenses.
- Employees who normally work in an office in one state, but live in another may be facing additional tax-filing complications. This is because new legislation would allow employees who perform employment duties in multiple states to only be subject to income tax in their state of residence and any jurisdiction where the employee is present and working for more than 30 days during the calendar year.
Bottom line from Forbes: You should hire a tax professional if you have any concerns! We are here to help. Contact us today for a free consultation.