Claiming expenses for tax purposes?

Forum|Forum|1 year ago
August 28, 2024
1 reply
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I am working out of my house, which I rent. Am I able to claim a portion of my rent as a business expense? What are the guidelines?

What about other items such as internet, mobile phone, computer and other equipment?

NateTheGrEAt

Employee

If you are self-employed (for example, an independent contractor or receiving a 1099-MISC) you can deduct a portion of your rent and other home related expenses using the Home Office Deduction.

On the other hand, if you are a W2 employee you cannot presently deduct employee business expenses on your Federal return. This was a change made by TCJA for tax years 2018-2025. However, some states such as California do allow for deduction of employee business expenses on the state return.

The Home Office Deduction applies to items such as rent, utilities, home repairs, and the like. Expenses that are not "home" expenses such as your computer equipment would be deductible separately - again, depending on whether you are self employed.

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