Work from Home? Here’s How It Can Help You during Tax Season

Employees who work from home are increasing in number like never before. Currently, employees who work from home constitute a sizable piece of the workforce. In many cases, these employees may be eligible for tax deductions that are unavailable to in-office employees. If you’re not sure how to claim these deductions, you want to first check with the IRS to make sure you meet the criteria because falsely utilizing these deductions could cost you substantial penalties later.

Home Office Deduction

If you use your home office regularly for business purposes, you should be able to deduct a portion of your home-related expenses, such as mortgage interest, property tax and some utilities.

Keep track of mileage and travel expenses

Do you use your personal vehicle for business travel? Do you pay for meals and hotels out of your own pocket? This might allow you to qualify for a tax deduction. If your employer reimburses you, you can’t deduct it; however, if they don’t reimburse you, deduct away.

Keep thorough records and save receipts

If you want to ensure that you are keeping accurate records of expenses, be sure to spend extra effort keeping records and save receipts. The IRS recommends that you write your expenses down or get a log book that will help you keep track just in case anyone asks questions later about your deductions. Records kept on your computer will satisfy this requirement.

Self-employed individuals and independent contractors

While people who are self-employed or independent contractors are not technically employees, you may still be eligible for the same deductions.

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