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June 3, 2019
Solved

Can an employee deduct the cost of a temporary office as an un-reimbursed office expense?

  • June 3, 2019
  • 1 reply
  • 0 views

IRS pubs only mention home office expenses.  The employee worked remotely in NY City for a company based in Los Angeles.  Employee rented an office at WeWork instead of working at home because office was more productive.  

Best answer by MargaretL

Yes, as an employee, you can deduct cost of the rented office as job-related expenses, if you were required to have one by your employer.  The office must be for the convenience of your employer - not your own. If employer lets you "telecommute" as an option, but not as mandatory requirement - no deduction is allowed, whether it is home office or temporarily rented office. 

If you do qualify as above, here is data entry:

  1. Federal Taxes
  2. Deductions & Credits (you may have to select See all tax breaks)
  3. Employment Expenses
  4. Job-Expenses for W2 Income

1 reply

MargaretL
MargaretLAnswer
Employee
June 3, 2019

Yes, as an employee, you can deduct cost of the rented office as job-related expenses, if you were required to have one by your employer.  The office must be for the convenience of your employer - not your own. If employer lets you "telecommute" as an option, but not as mandatory requirement - no deduction is allowed, whether it is home office or temporarily rented office. 

If you do qualify as above, here is data entry:

  1. Federal Taxes
  2. Deductions & Credits (you may have to select See all tax breaks)
  3. Employment Expenses
  4. Job-Expenses for W2 Income
June 3, 2019
Is this answer still applicable for the 2018 tax year given the recent overhaul?  I'm in exactly the same situation (live in Bay Area, Employer is in SoCal, and I paid out of pocket for a WeWork because I didn't have appropriate home office space for nearly full-time work from home).   

Thanks for any insights.