COVID-19 has changed our lives in many ways, and some of the changes have tax implications. Here is basic information about two common situations.
Working from Home
Many employees have been told not to come into their workplaces due to the pandemic. If you’re an employee who telecommutes and communicates with your employer mainly by telephone, videoconferencing, and email, you should know about the strict rules that govern whether you can deduct your home office expenses.
Unfortunately, employee home office expenses aren’t currently deductible, even if your employer requires you to work from home. Employee business expense deductions (including the expenses an employee incurs to maintain a home office) are miscellaneous itemized deductions and are disallowed from 2018 through 2025 under the Tax Cuts and Jobs Act.
However, if you’re self-employed and work out of an office in your home, you can be eligible to claim home office deductions for your related expenses if you satisfy the strict rules.