“What taxes can I write off if I’m working from home?” is a common question most self-employed people or home-based workers ask. Taxpayers may be eligible to various tax deductions at the end of the tax year. If you want to know more about how you can write off taxes working from home, this article is for you! Here, you will learn more about claiming home office expenses on a tax return and other deductibles you can apply for.
9 Expenses You Can Write Off Taxes Working from Home
1. Home Office Deduction
If you’ve dedicated a space in your home as an office where you do your work and meet clients, you can apply deduction for:
- Rent and mortgage interest
- Utilities such as electricity, heat, landline, and internet
- Home insurance
- Property tax
However, before you can apply for these deductions, your home office needs to follow a few requirements. You need to:
- have a partition which indicates that its a workspace and not a living space.
- take photos of your office for an audit.
- get a statement from your employer that you’re working from home out the employer’s convenience if you are a home-based worker.
The deductible percentage depends upon the size of your office relative to your home. If your home is 1,000 square and your office is 100 square feet, you can apply for a 10% deductible.
2. Office Equipment
Apart from your home office, the equipment that goes in it can also be deducted. These types of equipment include:
- Computer
- Printer
- Accessories such as headsets and webcameras
- Smartphone solely used for your business and work. You can also deduct your work phone’s monthly bill.
- Camera gear if your profession requires it
3. Travel Expenses
Even if you work from home, there are days when you need to go out and meet clients. Fortunately, you can deduct your travel expenses. The deductibles include mileage allowance, airfare, parking, and lodging.
4. Training and Education
Taking professional education or training to help your business grow is one of the things you can write off at tax time. If you want to develop more skills to help improve your profession and business, you can apply for tax deductibles on these classes.
5. Professional Aid and Services
Whenever you hire experts to help your business, you can apply for tax deductibles on their services. So make sure to keep the invoices of IT specialists, attorneys, and accountants for a tax deductible.
6. Office Supplies
Apart from the equipment in your office, the supplies you need to work on your projects can also be deductible. These essential office supplies include:
- Printer paper
- Staplers
- Pens
- Envelopes
Some office furniture such as desks and filing cabinets can also be deductible.
7. Computer Software
If most of your work requires computer software to finish your job, you can apply a deductible for the purchase and monthly bills. So long as you’re using them strictly for your business, you can deduct these types of software:
- Word processing software
- Design software
- Invoicing software
- PDF software
8. Marketing and Advertising
Advertising expenses for your business are tax deductible too. These advertising and marketing services include:
- Business cards
- Flyers
- Online advertisements and hosting fees
9. Health Insurance
If you’re self-employed and your business will be claiming a profit for the financial year, you are eligible to deduct 100% of your insurance. This can also include your spouse and children. However, the deductible will only cover your health insurance premiums if you’re not currently under a health coverage from your employer.
Watch this video from Money Talk News to find out more about how to write off taxes working from home!
Filing your taxes can be a big nightmare if you’re self-employed. But if you keep records of any of the deductibles on this list, you’ll find an easier time to write off taxes working from home.
Do you have more questions about the expenses where you can write off taxes working from home? Do you know of other expenses that are tax deductible? Mention them in the comments section below!
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