Home office expense for W2 work

Forum|Forum|1 year ago
March 31, 2025
2 replies
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I work from home 100% via W-2 work. Turbo tax has a question about employment expense for W-2 work, can I enter my home office expense on this part like rent for apartment and utilities?

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MindyB

No, currently unreimbursed employee expenses aren't deductible for federal purposes. These expense were considered unreimbursed employee expenses and have been suspended through 2025. They currently are set to be reinstated in 2026.

While home office expenses are not deductible for federal purposes for W-2 employees, it may be deductible for state purposes. You can check your state's instructions to see if they allow this, or enter the expenses and let TurboTax figure any deduction for you.

Here's some information you may find helpful: Are Unreimbursed Employee Expenses Deductible?

PebsAuthor

Thank you for the response. I live in CA. I tried entering my W2 home office expense and noticed it changed my state refund, and the federal due amount remained the same. Does that sound about right?

xmasbaby0

Employee

Yes that can be correct. W-2 job-related expenses will have no effect on your federal refund or federal tax due, but they might affect your state result.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

xmasbaby0

Employee

W-2 employees cannot deduct job-related expenses on a federal return. Job-related expenses were eliminated as a federal deduction for W-2 employees by the tax laws that changed for 2018 and beyond. Your state tax laws might be different in AL, AR, CA, HI, MN, NY or PA.

If you live in a state that lets you deduct job-related expenses, the information will flow from your federal return to the state return, so enter it in Federal>Deductions and Credits>Employment Expenses>Job-Related Expenses