Deductions & credits

If you itemize deductions (Schedule A), you may claim the home office expenses you incurred for your W-2 income if you worked at home for the convenience of your employer. These expenses aren't fully deductible as they are subject to the 2% rule.

During the tax interview, you'll have the option to select the Simplified Method for the home office deduction, if you qualify. The maximum deduction using the Simplified Method is $1,500.

To enter your home office expenses (for work as an employee):

• Continue working on your return in TurboTax Online. (If your return isn't open, you'll need to sign in and click Take me to my return.)
• Click the drop-down arrow next to Tax Tools (lower left of your screen).
• Select Tools.
• In the pop-up window, select Topic Search.
• In the I'm looking for: box, type 2106.
• In the results box, highlight 2106, then click GO.
• You'll land on the page that says Tell us about the occupation you have expenses for. Enter your occupation and click Continue. 
• Continue to answer the questions in this section. Select Yes and click Continue when asked, Do you have home office expenses?
• Provide information about your office as prompted, including the square footage. During the interview, you'll be able to select the Simplified Method if you qualify. (Click the screenshot below for reference.)

Note: If using the TurboTax CD/Download software, you'll use the Find function (instead of "My Account") to search for the topic.

Please see the FAQ below for more information.

[Edited 02.13.2018 I 04:55PM PST]