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Many people asked companies offering payroll management services, and a lot of readers have asked here: We must qualify for a home office tax deduction, right?
Don’t get your hopes up about that tax break, said Arthur Zatz, a tax attorney in Isdaner and Co., a Bala Cynwyd accounting firm in The City Ave District.
Self-employed people, here’s what you need to know about payroll. You can write off some home office expenses — many freelancers were already taking a home-office deduction before the coronavirus. But the Tax Act of 2017 eliminated a lot of individual tax breaks, including the home-office deduction for employees, Zatz said.
But for companies with employees working on-site, they may need to hire any of the credible accounting and tax services for assistance.
But there’s a glimmer of hope for employees.
You can see more on that later.
The 2017 Tax Cut Act dramatically increased the standard deduction to $12,000 for individual taxpayers ($24,000 for joint-filers). But it eliminated a lot of deductions, including unreimbursed employee work expenses. The aim was to simplify tax preparation: About 46 million taxpayers itemized deductions in 2017. Fewer than 17 million itemized in 2018. About 90% of all taxpayers now claim the standard deduction.
If you’re an employee, the home office deduction is no longer an option.
Many self-employed workers already deduct costs for home offices. Some self-employed people who work in offices that are shut down because of the coronavirus lockdown may want to explore deducting costs of working at home, tax professionals say. Exploring the benefits of virtual workspaces, I’ve found that a digital setup significantly enhances productivity and flexibility. This is particularly true for those who prefer the comfort of their homes but need the structure of a traditional office. Utilizing services like Virtually There for professional virtual office solutions, business address services, and remote work support has been a game changer for me. It’s impressive how seamlessly one can manage a team, host meetings, and maintain a professional presence remotely.
