DETROIT – Last year, many Americans shifted to working remotely.
That shift to working from home could have a big impact on your income taxes.
If you are a 1099 employee then you can take a home office deduction. If you get a W2 then you cannot.
“A lot of people were expecting to be able to write off their home office when in fact they can’t,” Luis Garcia with the IRS said.
The rule changed in 2017 and will run through 2025. If you’re a gig worker, sub contractor of self employed -- or have a side hustle -- and use your home office only for that business then you can get the home office deduction.
It’s important to note that if you’re thinking of selling your home in the near future then you’re going to have to give back the deduction you receive now.
Watch the video above for the full report.