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Level 1

Can i file home office deductions for both W2 and K1 business income earned using the same office?

I have a full time job (W2 income) and work almost exclusively from home (i reside in new york but my job is in illinois, even though i spend little time there). I also started an LLC in 2015 and received K-1 income from this. I have no office for this business and so work exclusively from home. I only have 1 home office that i use for both the W2 job and the business. How do i declare a home office expense for both? can i?
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Level 2

Can i file home office deductions for both W2 and K1 business income earned using the same office?

If you’re self-employed and work from home, you may be able to claim the home office deduction to help lower your federal income tax bill. But if you’re an employee who works at home, tax reform may have put a wrinkle in your dreams of a home office tax deduction.

While tax reform didn’t directly change the home office deduction, it did temporarily suspend miscellaneous itemized deductions that were claimed on Schedule A. And among those suspended items were unreimbursed employee expenses, including the home office deduction.

That means if you work from home as an employee for someone else, you can’t take the home office deduction for tax years between Jan. 1, 2018, and Dec. 31, 2025.

But if you’re self-employed (a small-business owner, freelancer or rideshare driver, for example) you may still be able to claim the deduction. But you’ll have to meet qualifying criteria.