Question

Disability and Home Office Expenses

Forum|Forum|5 years ago
March 30, 2021
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Like many, I have been working from home since March, 2020. Prior to that, I was working part-time due to a disability. I currently receive 35% of my salary (tax-free) via LTD payments, and I work 24-hours a week. When filling out my taxes on turbo tax, I got to the Job Related Expenses portion and went through the questionnaire. It asked if I was disabled - and I answered yes - because that part is definitely true. Admittedly, I'm not totally disabled (although I qualify for it), I choose to go back to work part-time so I can have a purpose. I totally get that deducting an Office in your home is pretty much NOT an option, but as Turbo tax brought me through the questionnaire, I answered all of the questions honestly and it yielded a $3,200 federal deduction. I live in the Bay Area - so rents are incredibly high. I have a dedicated office which I was grateful for. I know that I am one of the lucky ones, where I was able to continue to work and had a deducted space to work. Does this sound legitimate, or should I take it out? I feel extremely comfortable proving my disability status - but I'm not sure what the definition is to the IRS?

ColeenD3

Pub 463 states the following about impairment-related work expenses. If this fits your circumstances, then you have a right to claim the deduction.

Impairment-Related Work Expenses of Disabled Employees

If you are an employee with a physical or mental disability, your impairment-related work expenses aren’t subject to the 2%-of-adjusted-gross-income limit that applies to most other employee business expenses. After you complete Form 2106, enter your impairment-related work expenses from Form 2106, line 10, on Schedule A (Form 1040), line 16, and identify the type and amount of this expense on the line next to line 16. Impairment-related work expenses are your allowable expenses for attendant care at your workplace and other expenses in connection with your workplace that are necessary for you to be able to work.

You are disabled if you have:

• A physical or mental disability (for example, blindness or deafness) that functionally limits your being employed; or

• A physical or mental impairment (for example, a sight or hearing impairment) that substantially limits one or more of your major life activities, such as performing manual tasks, walking, speaking, breathing, learning, or working. You can deduct impairment-related expenses as business expenses if they are:

• Necessary for you to do your work satisfactorily;

• For goods and services not required or used, other than incidentally, in your personal activities; and

• Not specifically covered under other income tax laws.

Example 1. You are blind. You must use a reader to do your work. You use the reader both during your regular working hours at your place of work and outside your regular working hours away from your place of work. The reader's services are only for your work. You can deduct your expenses for the reader as business expenses.

Example 2. You are deaf. You must use a sign language interpreter during meetings while you are at work. The interpreter's services are used only for your work. You can deduct your expenses for the interpreter as business expenses