@SG171
Due to the tax law changes for 2018 - 2025 employees cannot deduct Home office expenses since the Sch A was changed. You should have a W-2 from the business as an employee of the corporation.
There is no tax form for the home office deduction on the S-Corp tax return (Form 1120S), and with the Tax Cuts and Jobs Act (TCJA), employees who work from home are no longer entitled to claim home office expenses on Schedule A (Itemized Deductions). Shareholders can, however, be reimbursed for an allocated portion of their related home expenses for their home office, including rent, mortgage interest, property taxes, home interest, home insurance, utilities, repairs and maintenance. Just a quick note though – although many taxpayers no longer benefit from itemizing deductions, if you do, any mortgage interest and property taxes reimbursed by the S-Corp must be excluded from the amounts included on the shareholder/employee’s Schedule A. To deduct home office expenses, the S-Corp must set up an accountable plan to have the company reimburse for home office expenses.
