Do I have to itemize to claim at expenses from a home business?

[jamieplymale]

I usually take the standard deduction and I do not think business expenses would push me over the standard deduction value. My home business is teaching English online so I have set up a home office.

[DoninGA · Accepted solution]

You are confusing personal itemized deductions reported on Schedule A  and business expenses reported on Schedule C.  

The standard deduction is based on your filing status.  Itemized deductions on Schedule A are for reporting your personal deductions of Medical Expenses, State income taxes withheld or sales taxes paid, Mortgage interest paid, real estate taxes paid, Charitable contributions and other Miscellaneous personal itemized deductions.  Whichever is greater, standard or itemized, is entered on your tax return.

Business expenses and income is only reported on Schedule C if you are a self-employed sole proprietor/independent contractor.  A business Home Office expense is reported on Form 8829 and on Schedule C.  Your net profit or loss from the business is reported on Form 1040 Line 12 and included with your other taxable income.