Tax deduction for phone & internet if working from home?
My wife works in IT and telecommutes & works from home most of the time. Takes 1-2 trips a month to her company HQ, otherwise she it at home. In order for her to do her work she needs a phone & internet access. Its not dedicated phone line or internet, but withouth both she can’t work. Can we deduct the costs from our taxes? Can we deduct %? If so, how do we determine that? Thanks!
I am assuming that your wife receives a W-2 for her work. IF her working from home is "for the convenience of her employer" then these expenses MIGHT in part be eligible for an employee business expenses deduction on Form 2106, which transfers to Sch A - Itemized deductions where it is deducted as Miscellaneous deductions. This is further reduced by 2% of your Adjusted Gross Income (front page of the 1040).
IF you itemize your deductions (home mortgage, real estate taxes, state income taxes or sales taxes, charitable contributions), THEN you MIGHT get a benefit IF the phone/internet along with any other miscellaneous itemized deductions are greater than 2% of your AGI.
Otherwise, it likely won’t do you a lot of good. You can possibly qualify for office in home, but it is also treated the same way as the other miscellaneous itemized deductions for employees.
Good Luck!
http://www.TaxEfilers.com
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Tags: Adjusted Gross Income, Agi, Amp, Benefit, Business Form, Charitable Contributions, Convenience, Employee Business Expenses, Form 2106, Front Page, Good Luck, Home Mortgage, internet-access, Miscellaneous Itemized Deductions, Phone Internet, Real Estate Taxes, Sales Taxes, State Income Taxes, Tax Deduction, Working From Home
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You need to read the IRS publication on home businesses - they have become very strict about "shared" items.
References :
I wouldn’t count on it, since the line (and the internet connection) could theoretically be used for non-business purposes. The other thing is, you’d have to spend enough on that, plus all your other deductibles (mortgage interest, charity, etc.) to overcome the personal deduction of $5,300 on a single. If you’re not above that mark, listing it is irrelevant.
References :
I am assuming that your wife receives a W-2 for her work. IF her working from home is "for the convenience of her employer" then these expenses MIGHT in part be eligible for an employee business expenses deduction on Form 2106, which transfers to Sch A - Itemized deductions where it is deducted as Miscellaneous deductions. This is further reduced by 2% of your Adjusted Gross Income (front page of the 1040).
IF you itemize your deductions (home mortgage, real estate taxes, state income taxes or sales taxes, charitable contributions), THEN you MIGHT get a benefit IF the phone/internet along with any other miscellaneous itemized deductions are greater than 2% of your AGI.
Otherwise, it likely won’t do you a lot of good. You can possibly qualify for office in home, but it is also treated the same way as the other miscellaneous itemized deductions for employees.
Good Luck!
http://www.TaxEfilers.com
References :