![]() Starting with tax year 2018, the standard deduction for head-of-household filers nearly doubled to $18,000. Last year, he filed as head-of-household and had the following expenses:īecause his expenses totaled $11,000 and were $1,650 ($11,000 - $9,350 allowable standard deduction for 2017 tax year) more than the standard deduction for head-of-household filers last year, he opted to itemize, so he could qualify for the larger deduction. He takes care of his twelve-year-old nephew. John is a teacher for a private school and has a home office. ![]() With the standard deduction nearly doubled, it will be a more favorable deduction for many taxpayers and makes the issue of the home office deduction unnecessary to consider.Įxample. In the past, you had to itemized deductions to qualify for the home office deduction. Review the article here to determine if itemizing your expenses is best for your current tax situation. Under the new tax reform, the standard deduction nearly doubled, and it will provide the best deduction for many taxpayers. The IRS expects millions of taxpayers to stop itemizing and choose the standard deduction. It is not all bad news for people that work from home. An employee is further defined as someone who is not self-employed, and the employer can exercise control over when the employee works and what work they do. The employers also are responsible for paying half of the FICA tax (Social Security and Medicare) on behalf of their employees. An employee is defined as someone who usually receives a W-2 and who has an employer that deducts payroll taxes from their paycheck. ![]() If you are an employee with a home office, this means you will no longer be able to deduct home office expenses. With the elimination of miscellaneous 2% deductions, this means the home office deduction went away for many taxpayers in 2018. Are Business Owners Allowed to Take the Home Office Deduction.ĭoes Home Office Deduction go Away in 2018?.Does the IRS Allow Employers to Reimburse Employees for Home Office Expenses and.Does Home Office Deduction go Away in 2018.Keep reading for additional details to determine if this applies to you and for answers to the following questions: This means starting with tax year 2018, the home office deduction no longer exists for many taxpayers. One of the big changes was the elimination of the miscellaneous 2% deductions that taxpayers take when they itemize expenses on Schedule A. It is the most comprehensive tax reform in more than 30 years. The tax reform changes signed into law by President Trump in December 2017 made drastic changes to the tax code. Many taxpayers are asking if they will still qualify for the home office deduction in 2018.
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