Business employees new to working at home have updated their home office and now want to know just how much of their new equipment, furnishings and added utilities are income tax deductible. Here's a wake up call for them. Doug Hord of My Tax Guy in Houston answers with two words.
Hord says that's due to the income tax changes made in 2016. "After the Tax Cut and Jobs Act went into effect, the deduction for any employee's unreimbursed expenses WENT AWAY. They took them all away! People who are still employed and have a paycheck and income taxes are taken out of their checks are not able to deduct an of the expenses they are incurring personally."
Only contractors can deduct non-reimbursed home business expenses. If you have a W-2...No home deductions for you! Here's a list of contractor's possible deductions:
2. Health Insurance Premiums & Medical Costs (Deducted on your Form 1040)
3. Home office deduction (Line 30)
4. Work Supplies (Line 22)
5. Travel (Line 24a)
6. Car Expenses (Line 9)
7. Cell Phone Costs (Part V)
8. Business Insurance (Line 15)
9. Commission and Fees (Line 10)
10. Depreciation of Assets, Section 179 (Line 13)