Tax deductions

2022 tax deductions for employees working from home

Did you know that approximately 26% of Americans are working from home in 2021? And this number is expected to remain relatively stable over the next few years. In fact, about 22% of the U.S. workforce is expected to work remotely through 2025, according to freelancing platform Upwork.

If you were part of the displaced workforce last year, you might be wondering if my new home office is tax deductible? Are there any additional deductions or credits that can be taken when filing their taxes before April 18, 2022?

TheStreet’s Tracy Byrnes sat down with Lisa Greene-Lewis, CPA and expert for TurboTax to get the answers.


Video transcript:

Tracy Byrnes: Many people are still working from home. Are you in the office? Are you out of the office? What deductions can you take? Can I claim this home office deduction? Am I working at the dining room table? What’s going on?

Lisa Greene-Lewis, CPA, TurboTax expert, is here with us right now. Look, a lot of people are still home and they’re going to stay home. So, are they getting any extra deductions or credits because of it?

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Lisa Greene-Lewis: Yes, that’s a big question we hear. And one thing to remember is that now, as a result of tax reform, you can only claim housing costs if you are self-employed. So, if you have an employer and you have been home, unfortunately you cannot deduct these work-from-home expenses.

Tracy Byrnes: So that includes your home office. This includes your Internet or part of your Internet. All the things the typical freelancer would take, you can’t take, even if you – and I’m talking about me – haven’t seen the inside of my office in probably two years now.

Lisa Greene-Lewis: Right. Yes, only freelancers. And independent, they must have an identified space where they carry out their activity. So it can’t be the kitchen table where everyone eats or where the kids do their homework. It should be a specific area of ​​their home where they do business.

Tracy Byrnes: Right. Half laundry room, half office, it doesn’t work. Can I deduct anything as someone working remotely?

Lisa Greene-Lewis: So, as an employee working remotely, you cannot deduct anything. I think the best thing to do would be to see if your employer has a benefits plan where they can possibly include some of these benefits for you. That could– that would be an option.

Tracy Byrnes: That’s good advice. Okay, but those of you who work from home, whether permanent or hybrid, you can’t deduct the home office or any other related expenses, ultimately.

Lisa Greene-Lewis, thank you so much for explaining all of this.

Lisa Greene-Lewis: Thank you for hosting me.

Editor’s note: Video produced by Zach Fauld of TheStreets