From the pandemic, remote work has radically changed our conception of “the office”. The Pew Research Center estimates that 14% of all adults employed over 18, or about 22 million people, are currently working at home All the time.
However, if you are a distant worker Deposit your taxesYou might not be able to claim the deduction of the home office. The deduction of the home office allows eligible taxpayers to reduce their tax obligation by canceling their workspace as a legitimate commercial expenditure. In most cases, the deduction of the home office only applies to independent and independent entrepreneurs, and not to those of traditional contracts which are classified as distant employees.
It all depends on how your Employment is classified by IRS And if your office is only used for business. Read the rest to learn more about how the home office deduction works in 2025.
Who qualifies for the deduction of the home office?
Although telework has become widespread for Traditional W-2 employeesThe deduction of the home office applies specifically to fully independent employees or independent entrepreneurs who use an area designated for business on a regular and / or exclusive basis. This means that you are probably eligible if you work for yourself or have a small business and have allocated part of your home as the main workspace.
Do W2 full-time employees work at home eligible?
If you are a distant W-2 employee hired for a while to carry out work in progress on the wage bill of a company, you probably cannot claim the deduction of the home office. * So, even if your boss has given you the green light to manage the zoom in your room or kitchen, the only real advantage you get is that you can work in pajamas.
However, there are warnings. For example, if you use your home office as a dedicated space to lead business for an independent stampede – that is to say during hours outside your regular job – you may be able to take advantage of the deduction , according to Lisa Greene -Lewis, CPA and expert at Turbotax.
In this case, you could claim part of the expenses such as home mortgage interests, property taxes, rent and public services depending on the percentage of the house used for your stampede, said Greene-Lewis.
Developing exact expenses for a dedicated team company is not easy to estimate. If you are trying to balance your W-2 income in addition to independent work, it is intelligent to consult a fiscalist.
* Note that this applies to home work employees under the law on tax reductions and jobs of 2017, which is in place until 2025. Keep an eye on potential changes in the future .
What type of space is eligible for the deduction of the home office?
To claim the deduction, your home office must be reserved for the work you do to earn a living, not only for occasional or accessory work.
“Space must be a dedicated space where you put business,” said Greene-Lewis. “It cannot be the same district where you and your Dînez family and your children do your homework.”
According to the IRS, you do not meet the requirements if the area is used to both business and personal purposes. To qualify, your home office must be used “exclusively and regularly as the main business location” or somewhere “that you meet or deal with patients, customers or customers in the normal course of your business or your business “.
This applies that you live in a house, an apartment or a condo, or that you rent or that you have. And the space should not be inside your home either. For example, if you are a musician who has created a studio in the garage, you may be able to take advantage of the deduction of the home office.
There are some exceptions to the “exclusive use” directive, including the storage of the inventory or the use of your home as a daycare. If you are wondering if your workspace meets the criteria, the IRS has a useful page With examples of arrangements that qualify.
What should you do to demand the deduction of the home office?
The IRS might want to verify that you are really eligible for the deduction of the home office. Plan to keep copies of all your expense receipts (such as buying a new office and a new chair, for example) and all the files showing that the office space is used exclusively for professional use.
“It is important for taxpayers to maintain good files and ensure that they can safeguard that they have followed the eligibility rules if the IRS has follow -up questions in a correspondence or if the Taxpayers find themselves in an audit“Said Garrett Watson, director of policies analysis at the Famiad Foundation.
To show that your home office is the real business, you can use the IRS “Simplified method“Or a regular method for your calculation. The simplified method is based on a defined amount, allowing you to claim $ 5 per square foot up to a total of 300 square feet, without having to deduct specific expenses for professional use of your house.
You may want to consider the more delicate method of calculating expenses, which can be paid with greater deduction. For example, if you run an approved daycare from your home, you must determine the amount of space used for the company and the percentage of time that it is occupied for the company.
What other IRS deductions or commercial expenditure can I claim as a distant worker?
If you work remotely as a W-2 employee, there are not too many options to detail deductions for working expenses.
If you are independent and work at home, however, your list of potential deductions is quite long. Everything you spend about money to feed your business (a new computer, a new software to manage your bills, ink cartridges for your printer and more) could be a business expenditure that will reduce your tax bill.
Can I be reimbursed for my employer’s commercial expenses?
Be reimbursed for corporate expenses depends on the person you work, where you live and the arrangement you have with your employer. If your company has implemented a return mandate to the office which forces you to be at the office several days a week, do not expect a refund.
However, certain locations must legally help employees covering the company’s costs at home. According to Paycer, 11 states (with Washington, DC and Seattle) have laws that require the reimbursement of some of certain expenses, such as the Internet and the mobile phone service.
Find out more: Best 2025 tax software: 7 services that can help you deposit your correct taxes
What else should I know about taxes this year?
Whatever the tax category in which you fall, there is a date on which you need to take a tour of your calendar: Tuesday April 15, 2025 tax deadline.
If you worry about having your forms completely square by then, You can request a six -month extension. Just make sure you pay your estimated tax bill before that. Otherwise, you will end up paying a late penalty.
Taxes are not easy to navigate. The more complicated your personal situation, the more likely you are to benefit from expert assistance. Hiring a dedicated taxation for your return to the use of software help such as Turbotax and other well -known tax preparation services, you can benefit from the understanding of the nuances of deductions.
