Work at home? Save on tax

Home Office and Other Home Business Deductions

If you haven’t filed yet you might be able to get this tax break.
If you work from home you can take the home office deduction.
You might be able to qualify so the IRS has requirements that you must understand before you take the deductions.

You have to use some part of your house all of the time just for business (exclusively).
It can be for a principal place of business, or as a place to meet or deal with patients, clients or customers in the normal course of your business, or in any connection with your trade or business where the business portion of your home is a separate structure not attached to your home.


You can’t deduct more than what your business expenses are and it also depends on what percentage of your house is used for business.

There is an exception in that if it is used for some particular storage use, rental use or daycare-facility use, you have to use it on a regular basis but not all of the time. So the day care kids can run around a room all day and when they go home it can be used by your family, but to be sure check it all out with the IRS because there are special rules for qualified daycare providers and for persons storing business inventory or product samples.

Self Employed

If you are an employee, additional rules apply for claiming the home office deduction. For example, the regular and exclusive business use must be for the convenience of your employer.

For people who are self-employed, use Form 8829 (Taxman123.com), Expenses for Business Use of Your Home to figure your home office deduction and report those deductions on the
IRS Form 1040 Schedule C, Profit or Loss From Business.

For more information see the IRS Publication 587 to learn more about business use of your home.

A link to it is on www.taxman123.com/irs_home_office_deductions.html at the bottom of the page.

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