From the pandemic, the remote work has radically changed our conception of the “office”. The Pew Research Center estimates that 14% of all adult employees over 18, or approximately 22 million people, are Currently working from home all the time.
However, if you are a remote worker Submission of your taxesYou still couldn't look for the reduction of the interior ministry. Rejecting the domestic office allows qualified taxpayers to reduce their tax obligation by writing off the workspace as a legitimate business expense. In most cases, the reduction of the domestic office applies only to self -employed and independent contractors, not those under traditional contracts classified as distant employees.
It all depends on how your Employment is categorized by IRS And if your office is only used for business. Read on to find out more about how the domestic office reduction in 2025 works.
Who qualifies to reduce the internal office?
Although telecommunications have become widespread Traditional employees of C-2The reduction of the domestic office is specifically referred to fully self -employed persons or independent contractors using a particular area for business on a regular and/or exclusive basis. This means you probably qualify if you work for yourself or own a small business and set aside part of your home as your primary workspace.
Do full -time employees work from home qualified?
If you are a remote employee in the C-2 engaged for a certain period of time to complete the current job on the company's payroll, you probably can't look for the reduction of the home office.* Well, even if your boss gives you the green light to Cope with zooming meetings in your guest room or kitchen, the only real benefit you get is what you can work in the pajamas.
However, there are some warnings. For example, if you use your internal office as a dedicated space for doing business for independent side congestion – that is, during hours outside your regular job – you may be able to use the refusal, according to Lisa Green -Levis, CPI and an expert in turbox.
In that case, you can ask for some of the costs as a home mortgage interest, property tax, rent and utilities based on the percentage of the home used for your side, said Green-Luis.
Working on the correct costs of dedicated business business is not easy to assess. If you are trying to balance the C-2 income at the top of self-employment, it is wise to consult a tax professional.
*Note that this applies to employees at home according to the Law on Tax and Jobs Laws in 2017, which is in operation by 2025. Watch out for potential future changes.
What kind of space is qualified to reduce the domestic office?
To ask for the refusal, your interior office must be reserved for the job you do to earn a living, not just for occasional or incidental work.
“The space should be a dedicated space where you run a business,” Green-Luis said. “It can't be the same area where you and your family eat dinner and your children do homework.”
According to IRS, you do not meet the requirements if the area is used both Business and personal goals. To qualify, your interior office must be used “exclusively and regularly as a main business place” or somewhere “You meet or deal with patients, clients or customers in the normal course of your trade or business”.
This is applied whether you live in a house, apartment or condo, or whether you rent or own. And the space doesn't have to be in your home. For example, if you are a musician who set up a studio in the garage, you may be able to use the home office refusal.
There are some exceptions to the “Exclusive Use” tutorial, including storage of stocks or using your home as a daily object. If you are wondering if your workspace meets the criteria, the IRS has a useful page with examples of qualifying arrangements.
What do you need to do to ask for a reduction in the Ministry of Interior?
IRS may want to confirm that you really have the right to reduce the internal office. Plan to store copies of all cost accounts (such as buying a new bureau and chair, for example) and all records showing office space are used exclusively for business use.
“It is important for taxpayers to maintain good records and make sure they can back up that they follow the eligibility rules if the IRS has questions that follow in correspondence or if The taxpayer ends in auditsaid Garrett Watson, Director of Tax Foundation Policy Analysis.
To show your internal office is the right deal, you can use IRS. “simpler method“Or a regular method for your calculation. The simplified method is based on a certain amount, allowing you to look for $ 5 per square meter up to a total of 300 square meters, without having to take specific costs for business use of your home.
You may want to take into account the more complex method of calculating costs, which can be paid with a bigger reduction. For example, if you run a licensed day care center from your home, you need to determine how much part of the space is used for business and for what percentage of time it is occupied for business.
What other IRS revocation or business cost can I claim as a remote worker?
If you work from a distance as an employee of the B-2, there are not too many options to state the revocation of work costs.
If you are self -employed and work from home, however, your list of potential deductions is quite long. Everything you spend money to encourage your business (new computer, new software to manage your invoices, ink cartridges for your printer and more) can be a business expense that will reduce your tax account.
Can I be back for business costs from my employer?
To make up for business costs depends on who you work, where you live and the arrangement you have with your employer. If your company has conducted a mandate to return to the office that requires you to be in the office a few days a week, do not expect compensation.
However, some locations must legally help employees covering business costs at home. According to Paycor, 11 states (along with Washington, DC and Seattle) have laws that require compensation to some costs, such as the Internet and mobile phone service.
Read more: Best Tax Software 2025: 7 Services that can help you submit your taxes properly
What else do I need to know about taxes this year?
Regardless of the tax category you fall, there is one date you need to round up on your calendar: Tuesday, April 15, 2025 Tax deadline.
If you are worried about what your shapes are completely square until then, You may request a six -month sequel. Just make sure you have paid your estimated tax account before. Otherwise, you will pay a late penalty.
Taxes are not easy to navigate. The more complicated your personal status, the more likely you are to benefit from finding expert help. From engaging a dedicated tax professional for your return to help with software such as Turbotax and other well -known tax preparation services, you can benefit from understanding the nuances of subtraction.