topic Re: 2020 home office deduction in Deductions & credits

2020 home office deduction

jayjo322 — Sun, 05 Apr 2020 02:09:05 GMT

My company's office is currently closed due to the coronavirus & I am working from my home at my employer's request. Will I be able to take a prorata deduction on my 2020 Form 1040 for home office expenses?

Re: 2020 home office deduction

ee-ea — Sun, 05 Apr 2020 02:19:25 GMT

No. The Tax Cuts and Jobs Act killed the deduction. See this FAQ https://ttlc.intuit.com/community/credits-and-deductions/help/what-is-the-2-rule/00/26650

Re: 2020 home office deduction

PeanutButter0701 — Sun, 05 Apr 2020 05:47:25 GMT

I work from home and have for 10+ years. I was going to help, but your question is not applicable to 2019 taxes though... that would be a question for 2020 taxes filed in 2021 and by then, the tax directive might be updated to address that specific question as this will be an issue/question applicable to thousands, likely millions of people in the same circumstances.

Re: 2020 home office deduction

ee-ea — Sun, 05 Apr 2020 05:54:57 GMT

Under the Tax Cuts and Jobs Act (TCJA) that the President signed into law on December 22, 2017, the deduction for these 2% miscellaneous expenses has been suspended in tax years 2018 through 2025.

Re: 2020 home office deduction

AzeeK — Fri, 19 Jun 2020 03:05:19 GMT

My question is related to Claiming Home office expenses, for 2019
1. I have an S-Corp and I am the S-Corp officer (owner / employee). Can I deduct portion of Home Office expenses as Reimbursement Business Expenses under an accountable plan on the business expenses? (As I used my home office section for working , audit and creating invoices ?

2. If yes, then under which category it will go?

3. Do I still use $5 per square footage method and multiply it by office space ?

Please help, thankyou

Re: 2020 home office deduction

Critter — Fri, 19 Jun 2020 14:45:12 GMT

If Schedule K-1 came from Form 1120S, S corporation shareholders generally cannot deduct unreimbursed business expenses with Schedule K-1 because the shareholders are categorized as employees when performing services for the corporation (and a corporate officer may be considered a statutory employee).

These expenses, if not subject to reimbursement from the corporation, are unreimbursed employee business expenses treated as miscellaneous itemized deductions subject to the 2% of the adjusted gross income (AGI) floor. However, with the Tax Cuts and Jobs Act (TCJA) this deduction has been eliminated on the federal return. However, you still may want to enter it in case it is allowable on your state return.

In this case, enter the home office expenses under Deductions & Credits > Employment Expenses > Job Expenses for W-2 Income.

For more from the IRS, see: S Corporation Employees, Shareholders and Corporate Officers