Taxes & Remote Working: Deductions for Employees Working From Home
Working from home can be a great setup if you can get it. TurboTax CPA Lisa Greene-Lewis breaks down what is and isn't deductible for remote workers who are filing taxes.
Video Transcript:
Title: Taxes & Remote Working: Deductions for Employees Working From Home
- [MUSIC PLAYING] TRACY BYRNES: Lot of people still working from home. Are you in the office? Are you out of the office? Like what deductions can you take? Can I take that home office deduction? Am I working at the dining room table? What's going on? Lisa Green-Lewis, CPA Turbotax expert here with us right now. Look, a lot of people are still home and they're going to stay home. So do they get extra deductions or credits because of this?
LISA GREEN-LEWIS: Yes, that's a big question we're hearing. And one thing to remember is now as a result of tax reform, you can only claim home expenses if you're self-employed. So if you have an employer and you've been at home, unfortunately, you can't deduct those work from home expenses.
TRACY BYRNES: So that includes your home office, that includes your internet or a portion of your internet, all the things that the typical self-employed person would take. You cannot take, even though you, and I mean me, hasn't seen the inside of my office in probably two years now?
LISA GREEN-LEWIS: Right. Yes. Only self-employed. And self-employed, they have to have an identified space where they do their business. So it can't be like the kitchen table where everybody eats or kids do homework. It has to be a specific area in their home where they do business.
TRACY BYRNES: Right. Like half laundry room, half office, that doesn't work. Is there anything I can deduct as a person working remotely?
LISA GREEN-LEWIS: So as an employee working remotely, there's nothing you could deduct. I think the best thing to do would see if your employer has an employee benefit plan where they can include some of those benefits for you possibly, that would be an option.
TRACY BYRNES: That's a great tip. All right. But those of you working from home, whether it's permanent or hybrid, you can't deduct the home office or any of the other related expenses bottom line. Lisa Green-Lewis, thank you so much for explaining all that.
LISA GREEN-LEWIS: Thank you for having me. [MUSIC PLAYING]
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