This year my husband and I worked from home doing telemerketing. We need to know what things we can deduct for our 2 offices in the house. What information do we need?

[Carl]

What state are you in? As far as the IRS is concerned, you two were self employed and "in business" for yourselves. How you report the business income depends on weather or not you are in a community property state. If you are, and assuming it's one business with two owners, then it doesn't matter that you're married filing joint. You have to report your business income/expenses on a completely separate 1065 Partnership return.

[SweetieJean]

Did the two of you work for different companies?

[Carl]

As far as what can be deducted/claimed, the program will walk you through it, if you just give it a chance really.

[Critter]

Are you employees  getting W-2 forms or are you sub contractors getting 1099 forms ?

[boothlarry87]

We work for a Call center that has agents working from home. We have to provide the office and internet. They supplied the equipment. We are not contractors, we are hourly employees. As far as being married or filing jointly, that is not the issue. I was just wondering what portion of the rent we each can claim and if any of the internet or utilities can be deducted?

[SweetieJean]

"we are hourly employees." But do you get a W-2?

[boothlarry87]

Yes

[Carl]

Then you won't deal with the home office stuff until quite a bit later in the program when you get to it. Under the Deductions & Credits tab there's a section for Job Related Expenses. You'll claim your home office in there. Do note that in order to qualify to claim a home office, it must be for the convenience of your employer, and not for your convenience. I really don't see any problem with that in your case.

[boothlarry87]

Ok thanks so much

[Carl]

Just work through the program the way it's designed and intended to be used. Then when you get to the Job Related Expenses section and start working it through, that's the time to ask questions. It will also enable you to ask more pertinent questions, instead of general ones like "what can we deduct?" The answer to that particular question depends on things like, if you own your home, rent your home, or maybe live with someone else in a cost sharing arraignment. But for the most part, the program will educate you on what you can deduct, as it asks you for dollar amounts.
Do note also that it's important to READ THE SMALL PRINT on each screen, because that small print matters, big time.

[Anita01]

Don't be disappointed if you end up with no deductible expense.  Since you mentioned rent, I'm assuming you do not have mortgage interest and property tax to itemize.  These home office expenses are a part of your itemized deductions.  When you finish entering all your job related expenses, there will be a subtraction of 2% of your Adjusted Gross Income, and only the expense over that amount will be dwductible.  

You'll then have one more hurdle to pass-none of your itemized expenses are deductible unless the total of ALL your itemized expenses exceeds your standard deduction, which for you will be over $12,000.

[Carl]

$12,700 to be  exact. And you can add $4,050 to that for each qualifying dependent claimed on your tax return. So I doubt you're going to have that much in HO expenses. But hey, you won't know what you have until you finish your tax return in it's entirety. Your itemized deductions are limited to just HO expenses. YOu could have many other deductions for all we in this forum may know.