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June 18, 2021
Question

I have a home small business where do I enter my home office expenses?

  • June 18, 2021
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June 18, 2021

Thank you for choosing TurboTax.

The first thing you need to do is determine which category you fall into, and then read the rules from there.

Employment Expenses or Business Use of Home Expenses?

  • If you are self-employed, then you’ll report your Business use of Home Expenses on the T2125 and submit it with your income tax return.
  • If you are an employee and work from home, you must have a signed T2200 form from your employer which certifies the eligibility for you to be able to incur expenses related to your role – which the employer will not provide – and you are able to deduct.  Once you have that in place, then you can make some or all of the claims listed below.
  • If you’re a salaried or commission employee, you use Form T777 to claim any employment expenses to which you are entitled.
  • If you’re a transportation or trucking employee, you will use a TL2 instead.

To qualify for business-use-of-home expenses, you must:

  • Use the home workspace only to earn your business income, OR
  • Use it on a regular and ongoing basis to meet your clients, customers, or patients

Keep in mind: You cannot have another office at a second location and claim home workspace expenses.

 

For more information please check: 

Rules For Home Offices

Claiming Home Office Expenses for Your Small Business

What Kind of Expenses Can You Claim for Your Small Business?