Working from home has become more common than ever before, but did you know that it can have tax implications?
One major tax implication of working from home is that it can affect your eligibility for home office deductions.
To claim this deduction, the home office must be used exclusively for work purposes and must be your principal place of business.
Another tax implication is that you may be able to deduct certain expenses related to your home office, such as utilities, rent, and home maintenance.
However, these deductions are subject to strict rules and limitations.
If you are an employee who works from home, you may be able to deduct certain work-related expenses on your tax return, such as office supplies or a dedicated phone line.
However, these expenses must be directly related to your job and not reimbursed by your employer.
For those who are self-employed, working from home can have significant tax benefits. You may be able to deduct a portion of your home expenses as a business expense on your tax return, reducing your taxable income.
Finally, it's important to note that if you work from home for an employer based in another state, it can impact your state taxes... click below to learn more!