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office in home

Paul-G-328
Level 3

With so many people working at home, is there any way to claim office in home expense when there isnt a Schedule C?

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13 Replies 13
dascpa
Level 9

As an employee - not on their tax return. No more 2016 expenses. Suggest they discuss with employer about a reimbursement arrangement. If employer says no, ask for reimbursement in lieu of salary. I'd rather get $1k in non-taxable reimbursement than $1k in taxable salary. But my guess is - won't happen or else employer would have notified employee of that option previously.

sjrcpa
Level 15

I think a few states have some sort of deduction or credit for work at home expenses due to COVID


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IRonMaN
Level 15

They no longer have to pay anything to commute to work.  They can work in their pjs so their clothing costs are next to nothing.  They don't have to pay a restaurant to have lunch everyday.  Why do they need to deduct home office expenses?

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qbteachmt
Level 15

Yes; they work with their Employer to establish an Accountable Plan so that the employer can and will reimburse them for costs.

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BobKamman
Level 15

It wasn't available to most employees even before 2018.  First there was the 2% minimum for miscellaneous deductions, and then there was the requirement to itemize.  Then, if the deduction was calculated correctly, the tax savings might be less than the fee for adding the form.  I'm not sure what would be shown as an expense in an accountable plan -- a big component of the deduction was always depreciation, and can you charge that to an employer? -- but go ahead and ask.  If an employer asks me about it, I'm going to suggest a pay cut for all the commuting costs saved.  

qbteachmt
Level 15

"a big component of the deduction was always depreciation, and can you charge that to an employer?"

Yes. That is provided for.

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BobKamman
Level 15

Then pay tax on it when the home is sold?

qbteachmt
Level 15

For tax year 2020, it would have been nice if the employee/employer considered this at the time life changed:

https://www.journalofaccountancy.com/issues/2020/feb/employee-expenses-accountable-plan.html

 

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sjrcpa
Level 15

Not to mention that if they met those hurdles they were apt to be subject to AMT where it all got added back and they got no tax benefit.


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Paul-G-328
Level 3

with no other expenses that's why I was trying to claim 1099 as other income to avoid a Sch C to get hit with SE tax

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qbteachmt
Level 15

It's not clear what all of this means: "with no other expenses that's why I was trying to claim 1099 as other income to avoid a Sch C to get hit with SE tax"

What does "no other expenses" have to do with an Employee working from home?

And a 1099 is never used for anything on your topic.

And why would you consider there would be, or you need to avoid, Sched C? Nothing here is Sched C or SE.

Assuming these facts: This is an Employee, working from Home.

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Paul-G-328
Level 3

Sorry for the confusion. That post was in reference to another post  trying to put 1099 income in as Other Income because it's simply non W-2 wages because it's not a business but I do understand that the SE tax still must be paid.

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qbteachmt
Level 15

Okay, for the most part, this is "not a thing" and doesn't exist: "because it's simply non W-2 wages because it's not a business"

"but I do understand that the SE tax still must be paid."

On that other topic, you stated "job." You seem to be trying to pick a lane, and then drive in the entire road.

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