If you work from home, you may be able to take a home office deduction on your next taxes. To do so, however, you must meet specific qualifications and file for that deduction properly.
Qualifications for a Home Office Tax Deduction
To qualify for a home office tax deduction, you must use the space in question as your primary business place, and you must use it regularly and exclusively for business.
Regular and Exclusive Use
To qualify for regular and exclusive use, you must use the given space only to operate your business. For example, you cannot claim a home office tax deduction for your family living room where you also watch TV with your kids. If, however, you have an extra space in your home that you only use as an office, then you at least meet the "regular and exclusive use" qualification for a home office tax deduction.
Principal Place of Business
To claim a home office tax deduction on the part of your home, you will need to provide proof that you, indeed, use this space as your primary place of business. You can still qualify for a home office tax deduction if you also perform some of your business duties outside of your home and this space as long as your home office is the space where you conduct your business's work principally.
There are some exceptions to the above two qualifications. If you use part of your home as a storage or daycare facility, you may still be able to qualify for a home office deduction even if you fail to meet one or both of the qualifications above.
How to Claim Your Home Office Tax Deduction
The amount of a home office tax deduction is based on your home's percentage that you use as a home office. Whether or not it's a separate, isolated room, you must determine the exact square footage of your home office space and calculate it as a percentage of your total home office square footage.
To find out more about claiming a home office tax deduction, you can research IRS Publication 587, Business Use of Your Home.
Also, to help you figure out if you qualify for a home office tax deduction or, if you have already determined that you, indeed, do, your next step is to hire a qualified tax accountant to help you file for it correctly and get the maximum deduction you have coming to you. Scott Boyar, CPA, is one of the top Charlotte accountants with a wealth of experience helping gig workers, WFHers, freelancers, and at-home business owners get the biggest home office tax deductions they can.