Can You Claim a Home Office Deduction if You Worked From Home in 2023?
Who can claim the home office deduction?
Prior to the Tax Cuts and Jobs Act of 2017, traditionally employed workers could deduct unreimbursed job expenses above 2% of their adjusted gross incomes. But the Act suspended business deductions for employees until 2025.
- Self-employed individuals can claim a home office if the space is used exclusively for business.
- W-2 employees cannot deduct home offices unless they do freelance work.
What home expenses can you deduct?
You can deduct expenses like rent, mortgage interest, utilities, and maintenance related to the portion of your home used for business purposes.
- Deductible home expenses include rent, utilities, and depreciation.
- You cannot deduct expenses unrelated to the business portion of your home.
Does the IRS consider a home office suspicious?
Claiming an appropriate portion of your home as a business space is unlikely to trigger an audit. Keep accurate records and measurements to justify your deduction.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.