For Lee below on tax question...
Posted By: freebird on 2006-03-30
In Reply to:
I would recheck on that info. I know that you can deduct some expenses as an employee at home, albeit they are much more limited due only being able to claim that amount above 2% of adjusted gross income (I think that's the figure). I am going to try to give you a link here that also has links to IRS forms and info that tells you what forms to use and where to enter things...I'm not a tax expert by any means! but the way I understand it, if you own your home you still take the mortgage interest, taxes, etc. but on schedule A you figure out your expenses such as all your equipment, office supplies, and everthing and anything, such as desks, chairs, computer, router, curtains for your windows of your office, you can think of related to your home office and not reimbursed by your employer, and then transfer that to the 1040. If you rent, I would ask about taking your percentage of office under "otherwise nondeductible expenses" along with the % of your utilities, etc. because that is an expense to you!! I would think and a considerable one at that! and it might make some difference to you depending on how much you make and how big your apartment is. Your supplies, equipment, etc. are also added in and also subject to the 2% rule as an employee working at home.
Employees working from home really get the old kick in the pants, and if you make a lot of money, you probably will not have expenses to exceed the 2%, so you just get to suck it up. I also am taking a picture of my office to include in my taxes, in case there are questions later. I was still able to do self-employed taxes last year, but somewhere I read recommending to do that in case of audit. I just try to be very honest in everything I claim (buying a $3000 leather couch for your office might throw up a flag, but, hey! if it's really in your office and you need it so you can get out of your chair and sit on to to review work reports, maybe you could do it, if you could afford it!
Anyway, I don't know what your situation is, and as I said, I'm no tax expert by any means, but that's my take on it, but please get some more information about this just in case you are able to do this. I had a similar situation this year in figuring our taxes where my husband (an employee) had to spend a bunch of money out of our pockets for special clothing and equipment that he was not reimbursed for and we could not claim due to the 2% rule. Employees really get stiffed on this! I told him next year, he better be asking them to come up with a budget for that kind of thing, as I didn't think we should have had to foot that kind of bill for a project that they wanted him to do and that he had to have special items for!
Hope this helps, and good luck to you!
LINK/URL: Tax info
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