WASHINGTON — QUESTION:
Can you deduct work-from-home expenses on your 2021 tax return?
No, if you're an employee and get a W-2.
Yes, if are self-employed or a contractor and receive a 1099 form.
Dave Finklang a Certified Public Accountant, Anders CPAs,
Susan Allen, Association of International Certified Professional Accountants, Senior Manager for Tax Practice & Ethics.
Tax Day is April 15th and with so many people working from home, one of our viewers asked us to Verify, “Can I deduct ‘work from home’ expenses during coronavirus on my tax return?
Our sources, Dave Finklang a Certified Public Accountant with Anders CPAs, and Susan Allen, she’s a Senior Tax Manager with the Association of International Certified Professional Accountants.
Finklang says that Tax Cuts and Job Act of 2017 changed the federal filings for people who get a W2.
He said, "Unfortunately as part of the job cuts and tax act one of the things they took away from us to lower all the tax rates was the ability to take the home office deduction.”
The IRS backs that up on their site saying “generally…you can not deduct items related to your home (sic) as business expenses.”
Susan Allen with AICPA says instead, “If you work as an employee, you should ask your employer to reimburse you for work-related expenses.”
For those who get a 1099 form, like the self-employed and contractors – our experts say you do qualify for that deduction.
So we can Verify, if you get a W2, you’re not eligible for the home office deduction.
If you get an 1099 – you are.