If you’ve been working from home for months amid the COVID-19 pandemic and are hoping for a tax break for home office expenses and equipment, WOKV’s Consumer Warrior Clark Howard says you could be out of luck.
“If you are employed by somebody and getting a W-2 from them, you’re not going to be able to deduct home office expenses, equipment you buy, anything like that. So, it doesn’t apply to you,” says Howard.
But Howard says there is a sizeable group of workers these tax breaks do apply to- independent contractors.
“So, if you are an independent contractor, you’re responsible for your own taxes, you are able to deduct pretty much all your legitimate expenses involved with doing that work from your home, instead of at the people’s offices that you’re doing your work for normally outside coronavirus,” Howard says.
Howard says if you fall into the first category of people and are employed by somebody, the real advantage of working from home is not having to do the daily commute.
Get more consumer news and advice in Clark Howard’s latest on-demand podcasts.
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