People Working From Home Wonder What Expenses They Can Write Off: The Answer May Surprise You

NEW YORK (CBSNewYork) — Many people still have not returned to their office buildings, and with the upcoming tax season fast approaching, some want to know if they can write off those work from home expenses.

As CBS2’s Alice Gainer reported, you may be thinking about all of those items you bought to make working from home more doable this year. Maybe a desk, a chair, a ring light, slippers.

So can you write that off?

“That’s a great question,” said Steven Zelin, president of Zelin & Associates CPA.

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“This may have been the number one question I received on my podcast: I can’t wait until I get to April so I can deduct everything I’ve done,” said CBS News business analyst Jill Schlesinger.

Certified public accountants and financial experts have the answer, but many of you are not going to like it.

“If you’re a W2 employee then you cannot write off expenses that your employer does not reimburse you for,” Zelin said

“When we had a tax cut in 2017, that basically erased the ability for an employee to deduct the home office expense or any miscellaneous business expenses,” Schlesinger said.

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But there are some people who can write these things off.

“Under the current law, you can have a deduction for expenses like a computer or office supplies, would be if you had your own business as an independent contractor or sole proprietor,” Zelin said.

And not just supplies.

“If you’re self employed, if you’re a gig worker, you may be able to deduct your rent, your mortgage, your property taxes. You really have to make sure that you comply with the IRS rules. It has to be regular use of your location or even partial location. And of course you cannot be a pig — don’t say everything is for work. Check with your IRS rules, please, because it is an audit flag,” Schlesinger said.

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But if you are a W2 employee and still want to try and get money back for those expenses?

“You want to contact your employer to ask them what their reimbursement policy is, and if you meet certain criteria then you’ll be able to get reimbursed,” Zelin said.

And they say always check the IRS website for your state rules for clarification when doing your taxes.

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from CBS New York https://newyork.cbslocal.com/2020/12/04/people-working-from-home-wonder-what-expenses-they-can-write-off-the-answer-may-surprise-you/
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