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Deductions & credits
For tax years 2018 through 2025, there is not an option for a W-2 employee to claim home office expense on their Federal return. That would be part of employee business expense, which was suspended by the Tax Cuts and Jobs Act passed in 2017.
The employee business expense is entered on Form 2106 as part of the Federal return. Some states (such as California) did not conform to the Federal change. This means that you can still enter home office expenses for your wife (if qualified) to claim the home office. The information may provide a tax break on your state return, but it will not change your Federal return.
Since you work as an independent consultant, you can claim a home office as part of your Schedule C, if qualified. One qualification is that your home office be used regularly and exclusively for your business. Be certain that the space you share with your wife as your home office has been divided between each of your areas and that you are only claiming the square feet of your part of the space.
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