Irs Home Office Deduction

Irs tax tip 2020 98 august 6 2020.

Irs home office deduction. Taxpayers can take this deduction if they use a portion of their home exclusively and on a regular basis for any of the following. As the taxpayer s main place of business. Small business owners may qualify for a home office deduction that will help them save money on their taxes and benefit their bottom line.

However the tax cuts and jobs act suspended the business use of home deduction from 2018 through 2025 for employees. Irs tax tip 2019 66 may 28 2019. Simplified option for taxable years starting on or after january 1 2013 filed beginning in 2014 you now have a simplified option for computing the home office deduction irs revenue procedure 2013 13 january 15 2013.

Home office deduction under the trump tax plan if the 2016 election had gone another way under the previous irs provisions millions of more people would be able to take the home office deduction. Those who qualified under the old law wrote off their home office. The home office deduction is available to qualifying self employed taxpayers independent contractors and those working in the gig economy.

With more people working from home than ever before some taxpayers may be wondering if they can claim a home office deduction when they file their 2020 tax return next year. Tax reform eliminated the employee home office deduction by taking away the ability to claim miscellaneous itemized deductions. The home office deduction allows qualifying taxpayers to deduct certain home expenses on their tax return.