During tax season, taxpayers are looking for ways to save money so they don’t pay too much for Uncle Sam. If you’re one of the millions working from home, you might be wondering what deductions you can include on your tax return and what credits have been reduced after the pandemic.
Miguel Burgos, TurboTax expert and CPA, mentions that employees who work from home do not have the same tax opportunity as before. If you are an employee, you will not be able to claim the home office deduction on your federal taxes until 2025. However, beginning in 2026, if there is no change in the law, employees may begin to claim home office expenses.
If you are self-employed, you have two options: you can divide your expenses by the percentage of space used for your business or use the simplified option and deduct $5 for each square foot of space used for your business, up to to a maximum of 300 square feet.
When it comes to personal expenses, you should keep in mind a general rule: personal expenses are generally not deductible unless they are specifically listed in the IRS code. However, there are exceptions. For example, if you are paying interest on your mortgage, this may be considered a legitimate tax deduction.
Keep in mind that if you usually get a refund, you might get less money this year. Alejandra Castro, spokesperson for the IRS, explains that there have been no economic impact payments like stimulus payments, the earned income tax credit has been significantly reduced for taxpayers without children and the children’s credit has also decreased considerably.
If you need help preparing your returns, the IRS offers free resources in person or online, depending on your income. You can find information at IRS.gov/es.