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NurseJoan
Returning Member

deductible expenses working from home

Hi, 

I worked from home almost all of 2020 since we weren't allowed to go to the office.  I am a renter.  It didn't occur to me when I filed my 2020 taxes to see if I can use part of my rent cost as an expense for working from home, to deduct from my taxes?

Also I have that same question as others in the lineup, but I cannot see the responses.  When can I expect to get a refund of taxes paid on the first $10,200 of unemployment income?  Do I have to file an amended return with TurboTax?  

6 Replies
GeorgeDenseff
Level 8

deductible expenses working from home

None of the expense for working from home is deductible.  That deduction was taken away by the Tax Cuts and Jobs Act in 2017.  

If you paid tax on your unemployment, the IRS is asking that you do not amend.  They started issuing refunds in June and planned to be done by September 1.  Then they said end of summer, which is September 22.  Today someone called and was told December 11.

The good news is that they are paying you interest for the time that they had the money.  They have issued millions of unemployment credit refunds and are working to finish all of them.

NurseJoan
Returning Member

deductible expenses working from home

was this reply from a CPA or turbotax rep?  How do you know that home expenses are not allowed?  I never read that anywhere.  They still have a section in the Itemized Deductions form to claim Unreimbursed Employment expenses as far as I know

DoninGA
Level 15

deductible expenses working from home


@NurseJoan wrote:

was this reply from a CPA or turbotax rep?  How do you know that home expenses are not allowed?  I never read that anywhere.  They still have a section in the Itemized Deductions form to claim Unreimbursed Employment expenses as far as I know


See this TurboTax support FAQ for deductions suspended by tax reform - https://ttlc.intuit.com/community/tax-reform/help/which-federal-tax-deductions-have-been-suspended-b...

Employee expenses and other miscellaneous deductions subject to the 2% limit

Miscellaneous deductions subject to the 2% limit, including unreimbursed job expenses (reported on Form 2106) have been repealed for tax years 2018–2025.

David_EA
Employee Tax Expert

deductible expenses working from home

Hello @NurseJoanThe number of people who work from home exploded in 2020 because of the COVID-19 pandemic. Some people will be able to take a tax deduction for their home office expenses, but many will not. The law changed in 2018 and eliminated the home office deduction for people who work for an employer. You can only qualify for the home office deduction now if you're self-employed. You're not eligible if you're an employee, even if you've been working remotely and had to set up an office in your home. 

However, you may be eligible for the home office deduction if you have any income from self-employment – whether you're a freelancer or had a side gig last year, if you are starting your own business, or even if you did self-employed consulting work for a few months between jobs. Your home office must also meet certain standards to be eligible. To qualify for the home office deduction, you must use part of your home "regularly and exclusively" for business. Your office doesn't need to be in a separate room, but it has to be in an area of your home where you don't do anything else. It can be a dedicated nook in the corner of your basement, for example, but it can't be the kitchen table where your family also eats.

Here is a good link that gets more in detail about the Home Office Deduction: https://turbotax.intuit.com/tax-tips/small-business-taxes/the-home-office-deduction/L1RZyYxzv 

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VolvoGirl
Level 15

deductible expenses working from home

It still shows up in the deductions section because it might still be a deduction on the state return.  

The Standard Deduction has increased so many people will be switching to the Standard Deduction.  And there is a max 10,000 limit (5,000 MFS) of property tax and state taxes "SALT".  SALT is State And Local Tax.  Which includes property tax, any state tax paid like for last year’s return and includes any state withholding from your W2s and any 1099s you have. And any taxes in W2 box 14 and 19 like SDI or VDI. You can only deduct up to 10,000 (5,000 MFS) for SALT State and Local Taxes.

 

And you can only deduct Medical that’s over 7.5% of your AGI.  Also the deduction for job expenses have been suspended.

 

FAQ on changes

https://ttlc.intuit.com/community/tax-reform/help/how-will-tax-reform-affect-my-federal-tax-return/0...

 

Deductions that have been suspended for 2018-2025

https://ttlc.intuit.com/community/tax-reform/help/which-federal-tax-deductions-have-been-suspended-b...

 

For 2020 the standard deduction amounts are:

Single 12,400 + 1,650 for 65 and over or blind (14,050)

HOH 18,650 + 1,650 for 65 and over or blind

Joint 24,800 + 1,300 for each 65 and over or blind

Married filing Separate 12,400 + 1,300 for 65 and over or blind

 

 

GeorgeDenseff
Level 8

deductible expenses working from home

The home office deduction is available to qualifying self-employed taxpayers, independent contractors and those working in the gig economy. However, the Tax Cuts and Jobs Act suspended the business use of home deduction from 2018 through 2025 for employees.

 

IRS Home Office Rules

 

 

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