2020 home office deduction

[jayjo322]

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?

[ee-ea]

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

[PeanutButter0701]

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. 

[ee-ea · Accepted solution]

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. 

[AzeeK]

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

[Critter]

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