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SubscribeEver since working from home became the new normal, the confusion around tax deductions has only gotten worse. Can you write off your internet? What about that cozy home office you built in 2020? Are you leaving money on the table?
A recent feature by The U.S. Sun is setting the record straight and taking a blowtorch to some of the most common work-from-home tax myths floating around. And if you’re one of the millions of Americans who spent time working remotely last year, you need to see this.
Here are some highlights of the key points made.
Not quite. The article explains that W-2 employees typically can’t deduct home office expenses, even if they worked remotely. That deduction was eliminated for most employees under the 2017 Tax Cuts and Jobs Act.
Good news: If you’re self-employed, a freelancer, or a small business owner, you can still take a home office deduction—as long as you meet the IRS criteria.
Wrong again! The IRS wants to see that your home office is used exclusively and regularly for business purposes. That means the kitchen table or your kid’s old bedroom-turned-Zoom room might not cut it.
Big mistake. For those who qualify, the home office deduction can lead to real savings—sometimes hundreds or even thousands of dollars, depending on your setup and how much of your home is used for business.
Tax attorney, CPA, and bestselling author Mark J. Kohler weighed in on this common confusion:
“People hear ‘work from home’ and immediately think ‘tax deduction,’ but that’s not always true. The IRS is very specific. If you want to take full advantage of what the law allows, you need to know the rules—and plan accordingly.”
This piece is a must-read if you’ve spent any part of the year working from home—especially if you’re a business owner or freelancer. Understanding what’s deductible (and what’s not) could be the key to keeping more of your hard-earned money.
Read the full feature on The U.S. Sun here:
Tax myths that could cost you money — and what you can really deduct if you work from home
And remember: Smart tax strategy doesn’t start in April—it starts with education.