home_office

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brown
brown Member Posts: 2 Newcomer

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?

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  • JMSSGV
    JMSSGV Member Posts: 74 Level 5
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    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
    MatthewD FreeTaxUSA Team Posts: 247
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    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,

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

    Also:

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

    For more details click this IRS page.

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