Working From Home? Know These Tax Implications

Nowadays, many people are working from home. This can be either their personal choice or due to the pandemic. In this case, working from home can change a lot of different things in your life, even preparing your income tax.

Taking advantage of tax services in Round Rock, Texas can help you address the tax implications of your situation. Nonetheless, here are important things that you should know:

• Employees cannot deduct work-from-home expenses for federal tax purposes.
  Tax reforms do not allow employees who are forced to work from home from deducting these expenses. Only self-employed individuals can claim work-from-home expenses as federal tax deductibles.
• Some states allow employees to claim work-from-home deductions for state tax.
  Check with your state if you can do this. Tax accounting firms in Texas should be up-to-date with the latest announcements from state tax agencies when it comes to this specific matter.
• Home office deduction requires a designated home office.
  If you are self-employed, you can claim the home office deduction only if you have a designated home office. Working in the kitchen without an actual office in your home does not make you qualify for such a deduction.

KF Tax & Accounting, P.C. helps you identify and claim the deductions that you qualify for. Call today so we can talk about how you can benefit from our accounting and bookkeeping services.