Eligible US taxpayers can use the home office deduction to deduct certain home expenses from their annual tax return.
Following the Covid-19 outbreak, the number of people working from home increased dramatically in 2020. Despite the fact that Covid-19 is no longer a new emergency, many employees continue to work from home on a regular basis.
However, some people are unaware that the US government allows them to claim a home office deduction.
According to the Internal Revenue Service (IRS), “the term “home” for purposes of this deduction includes a house, apartment, condominium, mobile home, boat, or similar property.”
“Includes structures on the property as well.” These are places such as a detached garage, studio, barn, or shed.
For taxpayers who want to claim home expenses, the IRS has only two basic requirements. To qualify for a tax deduction, an individual must use a portion of their home, such as an extra room, on a regular basis for conducting business.
Meanwhile, their primary place of business must be registered at their residence.
“A taxpayer can also meet this requirement if administrative or management activities are performed at home and there is no other location where these duties can be performed,” the IRS explains”As a result, someone who conducts business outside of their home but also conducts business from their home may still qualify for a home office deduction.”
It should be noted that a home office deduction is also available for costs associated with a separate structure that is not an integral part of the home, but only if that structure is used for business on a regular and exclusive basis.
