home_office

Question

My wife worked from home in 2023.  What are the requirements to claim a credit or deduction for 'home office space(utilities etc;)' when I file early next year?

JMSSGV · Accepted Answer

Is your wife a W-2 employee or a sole proprietor (receives a 1099-NEC)? If she is a W-2 employee, there is no deduction available for a home office. (This may differ for state income tax purposes.) If she is a sole proprietor, please see this

https://www.irs.gov/credits-deductions/individuals/home-office-deduction-at-a-glance

MatthewD · Accepted Answer

Hi Brown,

This IRS has some specific requirements.  JMSSGV mentioned that if she is a W2, she is specifically not qualified.  Here is what the IRS says,

* Employees are not eligible to claim the home office deduction.
* Can be a house, apartment, condominium, mobile home, boat or similar property.
* Also includes structures on the property. These are places like an unattached garage, studio, barn or greenhouse.
* Doesn't include any part of the taxpayer's property used exclusively as a hotel, motel, inn or similar business.

Also:

* The office must be exclusive to conducting business.
* The home is considered the taxpayer's principal place of business.

For more details click this IRS page.