One of the main doubts taxpayers have this tax season has to do with possible access to tax benefits for those who work remotely. This figure of deduction is contemplated by the Internal Revenue Service (IRS), but it does not contemplate everyone.
In this context, the IRS announced that Americans who work remotely as employees of a company will not be able to deduct any expenses related to their work because they belong to a company.
Meanwhile, self-employed workers can qualify for the home office deduction and any other business expenses that are ordinary and necessary for your business. Such deductions are based on reserving an area “exclusively and regularly” for business.
Taxpayers should not lose sight of this, since they are two completely different tax figures, despite the fact that it is possible to work remotely.
Mark Steber, senior vice president and chief tax information officer for Jackson Hewitt, told FOX that employees who work from home should pay attention to any reimbursement received from their employersas the reimbursement may count as taxable income, depending on an employer’s benefit setup.
In the case of self-employed workers who work from home, they can deduct taxes, this is what they should consider when filing their tax return, in accordance with current IRS rules:
-Demonstrate that the home you live in is used as your place of work or business center. If you conduct business at a location outside the home, but the taxpayer also habitually and regularly uses your home to conduct such activities, you may qualify for a home office deduction.
-Furthermore, if the taxpayer has in-person meetings with clients or at his home in the normal course of his business, even if he also conducts business elsewhere, you can deduct your expenses for the portion of your home. used exclusively and regularly for business.
-You can deduct the expenses of a separate free-standing structure, such as a studio, garage, or barn, if it is used exclusively and regularly for your business. The structure does not have to be your primary place of business or the only place where you meet with clients.
-Deductions for a home office are based on the percentage of your home devoted to business use. So if you use an entire room or part of a room to run your business, you need to calculate the percentage of your home dedicated to your business activities.
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