I now work a permanent hybrid schedule but I can come into the office if I want to. Can I claim home office deduction for NY State? What about employee expenses?

[FoundlingsAreOurFuture]

I'm not an employer. I receive a W-2 for this example. I work a hybrid schedule permanently now. A few days at home and a couple of days in the office. It is not because of covid-19 but the work culture changing as a result of the covid-19 pandemic societal effects. On the other hand, my employer allows me to voluntarily come into the office on the days I work remotely. They're not stopping me from coming in. It's optional. But my current designation is a hybrid employee. I'm not classified as an essential employee, where I would have to be in the office at all times.

So, with all that being said, can I claim a home office expenses deduction for NY State? I know Home Office deduction is suspended for Federal returns until 2025 for W-2 employees only. But New York State will still accept it, from what I recall. I'm just not 100% positive if I qualify for Home office. It feels like a gray area. What's my main office? I'm not sure. It's 60-70% remote and 30-40% in the office. My employer is not barring me from the building on the days I work remote and HR classifies me as hybrid. I don't know what the right answer is here.

What about W-2 Employee expenses deduction? Can I deduct things you would normally deduct for home office such as a portion of my utility bills, coffee supplies, my designated home office square footage, and so forth?

[ColeenD3]

A home office for an employee is for the employer's convenience, not the employee's. You do not qualify.

[FoundlingsAreOurFuture]

In case it makes a difference, the hybrid schedule was instituted organization-wide. It's not isolated to a small subset of people. It's the cultural norm now. For the office days, obviously I have to come into the office . For the remote days, I may or may not need permission in writing to come into the office. However, because HR classifies me as hybrid, they would expect me to regularly perform my responsibilities working remotely on those remote days.

If I don't qualify for the deduction, what would be a good example of a W-2 Employee qualifying for the home office deduction?

Thank you for your help.

[DoninGA]

@FoundlingsAreOurFuture There are no examples because as a W-2 employee you cannot claim any employee business expenses.

Employee business expenses were removed from the tax code due to the tax code changes in effect for tax years 2018 thru 2025.

[FoundlingsAreOurFuture]

I 'm aware of that. But I can still claim at the state level, as my state does still honor employee expenses and the home office deduction.

[DoninGA]

@FoundlingsAreOurFuture 

In that case then enter your job related expenses in Wages & Income>Employment Expenses>Job Expenses for W-2 Income

[FoundlingsAreOurFuture]

I found a good resource here that might be useful:

https://www.nolo.com/legal-encyclopedia/can-you-deduct-your-home-office-[product key removed]yee.htm....

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Convenience of Employer Test

Employees may only take the home office deduction if they maintain the home office for the convenience of their employer. An employee's home office is deemed to be for an employer's convenience only if it is:

• a condition of employment
• necessary for the employer's business to properly function, or
• needed to allow the employee to properly perform his or her duties.

The convenience of employer test is not met if using a home office is for your convenience or because you can get more work done at home. For example, you won't pass the test if you have an outside office provided by your employer but like to take work home with you. But you would pass the test if your employer doesn't provide you with an office, or if there is some valid business reason why you must work at home. In one case, for example, an employee was entitled to the home office deduction because her employer required her to perform work during off-hours when her regular office was closed.

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Condition of employment? I'm classified as a hybrid employee by HR. To me, that seems like a gray area, at worst.

Necessary for the employer's business to properly function? Well, even outside of my hybrid schedule, I may have to work off-business hours and that is not something I can do at the office.

Needed to allow the employee to properly perform his or her duties? Yes, I'd say so for me. As I said, there are occasions where I have to work off-hours, even outside of normal business hours, be it office or remote work.

In addition, the company doesn't provide me with a home office. If I can stand on my head in the middle of my living room and get the work done, that's fine with them. But for my responsibilities, I need a proper home office to replicate my setup at the office. Then add-on that I'm now classified by HR as a hybrid employee. From where I sit, it does seem like to me that it's not an outright no or an outright yes, with respect to a home office deduction (at the state level since it's suspended until 2025 for federal return).