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Added home office deduction, but there was no reduction in tax due.

Forum|Forum|7 years ago
June 4, 2019
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Entered home office deduction using easy method. Example: $1400 deduction calculated by Turbotax.
Tax due did not change. Example Fed Tax due = $700 before AND after deduction was added. I tried this twice.

TurboTax Premier Online

Best answer by PaulaM

Home office deductions for employees fall under the 2% rule. The 2% rule states the sum of all your job-related expenses would have to exceed 2% of your AGI before you would see a benefit from them on your itemized deductions.

See IRS link below.

https://www.irs.gov/pub/irs-pdf/p529.pdf

P

PaulaMAnswer

Employee

Home office deductions for employees fall under the 2% rule. The 2% rule states the sum of all your job-related expenses would have to exceed 2% of your AGI before you would see a benefit from them on your itemized deductions.

See IRS link below.

https://www.irs.gov/pub/irs-pdf/p529.pdf

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