Tax Deductions When You Work from Home
A growing percentage of Utah’s workforce is working from home. This includes both people who are working for a business or a corporation, and also people who work for themselves. Working from home can be a great alternative for individuals who have some sort of physical disability that makes traveling into work difficult, those who are extremely self-motivated, and those who work better in a solo environment. Some individuals also work from home because they own their own business, and prefer to have a home office, rather than a remote office. Whatever the reason, now that tax season is upon us, there are different factors that you’ll have to take into consideration when you file your taxes, as someone who works from home.
We’re all always looking for ways to save during tax season, and how to get the biggest tax return possible. The good news is that there are some tax deductions that you may be eligible for, that you wouldn’t be if you were doing the same job in an office space.
Home Office Deductions
If you have a space in your home that is exclusively used for business purposes, it’s possible that you’ll qualify for a home office deduction. Often, an individual will work from home because it’s more convenient for their employer. For example, if you work for a company out of state, you working from home saves them money because they don’t have to rent out an office space for you. You may be able to deduct some mortgage expenses if you have a dedicated work space in your home.
Mileage and Travel expenses
Anytime you have to travel for work purposes, it’s important to save any travel itineraries and receipts, as it’s often possible that you can deduct these expenses for tax purposes, as long as the travel really was for business purposes.
Keep track of everything
In order to actually qualify for these tax deductions, you have to keep track of any time you spend money on a business expense and save all of your receipts. If there is no record of you making a business related purchase, you won’t be eligible for any sort of deduction or tax break. If you have any questions on what qualifies as a tax deductible expense, or if you’re unsure of what sort of expenses you should be keeping track of, talk to your accountant.