bkaytaxes
Employee Tax Expert

Get your taxes done using TurboTax

Hello @AYJohnson,

Working from home does have it's perks but lets make sure you have the tools to know when you can take deductions and what can qualify.    With changes in the tax law, contractors can still tax deductions for expenses but employee cannot.  Since you were both during 2023 it is important to keep track of your activity as a contractor separate.

 

When you work as an employee your are no longer allowed to take a deduction for  unreimbursed employee expenses for any expenses you may have incurred as a result of that position.  Only a few jobs in the armed forces reservist, performing artist and a few other special groups of employees can still take a deduction.    Here an article for you to reference and find more details:  Unreimbursed Employee Expenses 

 

As a contractor you are allowed to deduct expenses that are reasonable and necessary for your line of work.  So if you are a contractor, you may need to buy a hammer and nails and a contractors license, etc.  So it depends on your line of work.  If you  have an area of your home that is used exclusively for work then it may be deductible under the Home Office Deduction.  The deduction for the space and other home expenses, like utilities, etc. are  based on the percent of spaced used of your total home.   Here is a great article for expenses you may be able to deduct as a self-employed person:  Self Employed Deductions    

 

The great news is Turbo Tax will provide a list of common expenses based up the type of work you do and will also guide you through each section and do the calculations for home office, etc.  

 

Wishing you all the best with please reach out with additional questions.

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