Need Advice regarding State Tax Deductions for Home Office Expenses
Hello everyone,
I hope you all are doing well. I have a question regarding state tax deductions for home office expenses; And I am hoping to get some guidance from those with experience or knowledge in this area.
I recently started working from home due to the pandemic; and like many others, I have incurred expenses related to setting up and maintaining a home office. I understand that federal tax laws have provisions for deducting these expenses, but I am uncertain about the specifics when it comes to state taxes, particularly in USA.
Are home office expenses deductible on state taxes in USA? What documentation is typically required to claim these deductions? Are there any specific criteria or limitations I should be aware of? Are there differences between deducting these expenses on state taxes compared to federal taxes?
Also, I have gone through this post; https://community.freetaxusa.com/kb/articles/27-how-to-take-advantage-of-devops-office-expenses which definitely helped me out a lot.
Instead of this, If anyone has navigated similar situations or has advice on maximizing deductions related to home office expenses on state taxes, I would greatly appreciate your insights.
Thank you in advance for your help and assistance.
Comments
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It depends on whether you are self-employed or are working from home for a W-2 job.
If you are self-employed, most states will simply allow all of the self-employed business deductions (like a home office expense) on the state return.
If you are working from home for a W-2 job, unreimbursed expenses like a home office are not deductible on federal return for all but a handful of professions and situations. Most states have the same rules on this as the federal return. However, there are a handful of states that allow you to deduct unreimbursed employee expenses. If you live in one of the states with special rules, you may be able to deduct a home office expense as an employee even though it will not be deductible on the federal return.
