Is Having a Home Office Tax Deductible?

PennyGem’s Elizabeth Keatinge tells us whether you can claim a home office tax deduction.

Transcript

00:00 A lot has changed in the last year, likely including your work situation.

00:08 If you're working from home, can you claim your home office as a tax deduction?

00:11 Self-employed taxpayers and independent contractors can claim the deduction.

00:15 According to the IRS, "If you use part of your home for business, you may be able to

00:20 deduct expenses for the business use of your home.

00:23 The home office deduction is available for homeowners and renters and applies to all

00:27 types of homes."

00:28 There must be "regular and exclusive use."

00:32 If you use an extra room to run a business, you can take a home office deduction for that

00:36 extra room.

00:37 You must show that you use your home as your principal place of business.

00:41 What if you work at both your home and another location?

00:44 If you conduct business at a location outside of your home, but also use your home substantially

00:49 and regularly to conduct business, you may qualify for a home office deduction.

00:53 Vertical Advisors Managing Partner Peter Digger-Gorey tells MarketWatch some states

00:58 let employees take deductions on home office expenses on their state income taxes, such

01:03 as Alabama, Arkansas, California, Hawaii, Minnesota, New York, and Pennsylvania.

01:09 Check out irs.gov for more information.

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