I deduct all expenses that relate to my home office-% of utilities, taxes, repairs to that room, --s
Posted By: Debra on 2006-03-24
In Reply to: To all ICs claiming huge deductions...(sm) - Very Upset
mortgage (we do not plan to sell our house so this deduction will not affect us)as my office is used only for that purpose, internet, phone, I print out a daily schedule so paper/ink, computer repairs, pens, pencils, tape, staples, file cabinets, storge bins for tax recepts/tax returns,file folders. Anything/everything I use to do my job.
I was using mileage for another account where I pick up tapes every day, but found for me the time it took to keep track of the mileage, write it down, add it up was not worth the effort so I quit doing it this year.
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Can an at home employee deduct a computer on taxes?
Yes, all utilities, garbage pick-up, home repoairs involving your office, etc
:+
I also took home office expenses as an employee, but --
You can only get any good out of it if you are also a homeowner with a lot of mortgage interest or have a lot of medical expenses, etc., that would make it higher than the standard deduction.
deducting home office expenses -
For the home office expense - You would measure the amount of space you actually use to work (your desk area) and figure the percentage of that square footage to your total square footage. Then you would use that percentage of your utilities costs, etc., to count on your taxes.
home office expenses are still deductible if you are an employee - nm
x
deduct everything you can think of, electricity, phone, home office if you chose to, supplies, inter
you get the picture. I don't do the home office deduction though because we keep saying we are going to build on a lot we have and things get screwed up with taxes due to this, something with depreciation, not really sure, know someone who had this problem though, owed a lot back. When we do move, then I will take it since I know it won't be an issue then. I write off about $2-$3K a year which helps some. Was paying quartly but have not done it in 2 years as I usually don't owe more than $1200 and my husband has extra taken out of his pay, so that has always, so far, taken care of any taxes I have "owed". -- Check out the IRS website they have plenty of info on the subject.
Can deduct portion of mortgage, utilities.Equip
x
You can still deduct your MT expenses if your and IC - sm
regardless of taking the standard deduction. Your write offs for MT are on the Schedule C (not B). My husband and I take the standard deduction as we don't have enough on our Sch. B; then I write off all my IC deductions and report my income on the Sch. C.; putting the bottom line (income minus IC write-offs) on the 1040 line 12. So I am not quite clear on what you are talking about but I know how I do it is how most of us (if not all) do our deductions. You may want to do an amended return.
Check with your tax person for certainty but I have a room solely used for my home office and I even
:)
Was told could deduct pet expenses. sm.
If it is a dog and is over 50 pounds, you can claim its food, vet bills, pet insurance, vaccinations all that as long as your business is run from your home. It applies as a guard dog. It does not matter which breed the dog is either. This is the state of Missouri, not sure about other states.
I am gonna try it as we shelled out alot of money over a period of time for a dog that was poisoned. Luckily, he lived.
Question on Income Taxes and Home Office
I need some input, please, on our tax situation. I moved to a new state and am having a new tax guy this year. I always declare my home office and a percentage of my utilities - have done so for 10+ years. This new tax guy said that my home office deductions won't matter, as they aren't higher than the standard deduction we are allowed as a married couple, and he can't believe I have never just filed a fast simple tax form without itemizing. My old tax guy never said a word - he would just get all my home office figures for me each year and said he "entered them" on my taxes. He also charged me around $350 to "itemize" each year, just for these home office figures. They are always about $3000 a year total. So now it seems I've been throwing my $$ out the window with my old tax guy? I always thought our home office deductions were able to be written off, so to speak, separate from that individual standard deduction. So, either my new tax guy doesn't know what he's talking about, or my old guy didn't. I have a feeling the new guy is right, though, the way he explained it. Does our home office deduction have to be more than the regular old standard deduction? Or does our home office cost count separately on taxes? Thanks for any help, as I don't want to hire a THIRD tax guy to check the other two. Thank goodness I never did Turbo Tax - I'd be even more lost.
Taxes, Expenses
I would have internet anyway; now I get to write it off. I would have long distance anyway; now I get to write it off. Everyone pays taxes and insurance, it is just a matter of who is doing the bookkeeping. Walmart STARTS at $8/hour and then when they pay all that same stuff they are really making $5- $6. You can write off ALL your health insurance, a portion of your utilities and the area you work in, computer, software, and other supplies.....save on gas (this is HUGE right now), work clothes, make up, day care, and and and. There's always more than one way to view something.
What do you mean? They pay/deduct all but state taxes?
.
You can deduct A LOT more than just office
x
Thwap the husband on the head, buy the keyboard, save the receipt, deduct it from your taxes.
I wouldn't even ask my husband for something like that, any more than he asks me if he can fill up his car with gas so he can get to work! Sheesh! What a prince of a guy you've got there.... You get your keyboard, girl!
True but that is to cover the expenses like rent, office supplies, sm
manager salaries. That does not include payroll that is based on service.
A good example woould be this: You are starting a book store. You need to plan the original inventory and six months worth of expenses. If you sell that inventory, you use the money from that to buy more books. If you do not sell any at first, you can stay in business for six months while you get noticed.
With transcription or any service business, you need enough in the bank to cover the same expenses, those that can keep you afloat while building your client base. However, you only hire more people as you get more customers. The payroll does not figure into the 6 months as it is based on what you provide, whereas the 6 months takes into account what it takes to get it going even if you do not have 1 employee.
Very, very few companies can have $800,000 lying around. If they did, they probably would need to invest it in equipment or spend it in other ways or the IRS would consider it profit and tax the heck out of it!
WORK-AT-HOME EXPENSES JUST AS MUCH - sm
as if I were working outside the home, if not more. The only thing I would spend money on an outside job would be the $4.00 daily bus fare. I have more than enough clothes for work, no problem there, maybe lunch or can brown-bag. The company pays the office space, light, electricity, internet, cable, AIR CONDITIONING in summer (imp.)
On the other hand, even as an employee, I am not reimbursed for my high-speed, HIGH-COST cable/DSL/telephone I need to make these few cents a line, electric costs, lights, AC BILL JUMPS WHEN SITTING AT PC ALL DAY IN SUMMER, buy my own office supplies, books, references.
Just another mind sc---ing they give you by telling you it's cheaper to work at home. (I have no kids).  
Any help on form 8829*Expenses for Business Use of your Home would be greatly
Hi All,
I was a statutory employee last year but not now. I usually do my own taxes but am having trouble with form 8829 and am not sure if the accountant can squeeze me in at this late date. Thought I would try here first for help. I use my den exclusively for work (almost) and am going to take this 7% of our home as a business expense.
Under Part II... Lines 10 and 11. Deductible mortgage interest and real estate taxes...I am going to take the entire amount on schedule A, so, hopefully, do not have to enter anything here.
line 17. Insurance. Are we allowed to take a portion of our homeowners insurance as a deduction? I have no separate business insurance.
Line 19. Utilities. I know I can take 7% of my electric, gas, water, garbage (I think), but what about phones? We have both cell and regular phone. When I call, I use the regular phone for toll free numbers, but the cell phone to my boss who does not have a toll free #.
Then, I need to find the value of my home for Part III. I guess I will check home sales in the neighborhood and go by that.
Geez..sorry for sounding like such a dummy. I can do all the other...capital gains, etc, just not sure what is allowed for home expenses.
As I say, I will try to get in to the accountant, but any advise for any of this form would be greatly appreciated. I cannot complete schedule A until I have my Profit or Loss done, which I cannot complete until I do this form.
Thanks.
Have room just for my office
I have a really big house and not that many people so have my own comfy quarters. I have a television in the room and it is on all the time but not a distraction for me, rather just sound around and the news when I need it.
Right now my office is in the family room...
we have a separate living room also...it is fine for now because I have an 8-year-old and a 15-month-old that need my attention so I can't be too far away...but we are planning on moving and I want an extra room for an office/playroom...maybe try some of those noise-reducing headphones if you can't escape the noise...
Have no office. Just the corner of the dining room. nm
x
My office is in a separate room, yet close enough
I can hear what is going on. I have a shock collar that I put on my dogs to keep them quiet when they are outside (I don't have to shock them but very rare occasion). I work late afternoon/early evening so that part of my schedule, pets and husband are in bed and I have total peace and quiet.
Office politics. That is why I enjoy working at home. In the office,
people are in other people business. Just mind your own business.
I started in the file room of the urology office I worked. And I was not
going to be a file clerk for the rest of my life. I only had 2 semesters of terminology, no other professional schooling. They had a fresh from a Mayo Fellowship peds urologist coming in and needed somebody to help with the typing. First it was half file-room and half transcription. Finally he was so busy, I became full time. I was there from 1990 until 2003. I then left to free-lance and start my own business. He has since moved to Arizona and I still type for him after all these years.
I started in the file room of a 6 doctor urology office....
The file room in any office is a nuclear dumping ground...any paper that nobody knows what to do with gets dumped there. Then and there I made up my mind that I was NOT going to be a file clerk for the rest of my life.
I actually started by filing part time and typing part time. When we got a new Peds Urologist in the office, fresh from a fellowship at Mayo, I was right there. We used tapes back then as that was in the early 1990's. As he could fill up a 2 sided tape with 8 hours of seeing patient's, the other girl in the office did not want any part of his work and left it for me. The rest, as they say, is history.
I had no professional training, just 2 semesters of medical terminology and a killer spelling ability.
After I had typed urology, I was then farmed out to our other offices and I learned GI/GU, family practice, sleep labs etc.
I now work for a major hospital on the west side of Michigan and still type for my Peds urologist. The only difference is that he now has his practice in AZ, not MI.
If you can find somebody willing to take a chance on you with no experience, jump on it with both feet. You will be glad you did.
Telecommuters being asked to pay taxes for home state of
By TOM HERMAN and RACHEL EMMA SILVERMAN
Staff Reporters of THE WALL STREET JOURNAL
November 1, 2005
A move by the Supreme Court means that many telecommuters could ultimately face higher income-tax bills.
The nation's highest court yesterday declined to hear an appeal by a Tennessee man who telecommuted to New York and was charged by that state for taxes on all his income. Because the Supreme Court won't review his appeal, New York's decision stands.
Many telecommuters could face higher state income-tax bills if other states are emboldened by New York's success and enact similar rules that tax out-of-state telecommuters. Some members of Congress already have introduced legislation to protect telecommuters from such taxes.
Some 9.9 million people work at home full- or part-time for employers other than themselves, according to the Telework Advisory Group at WorldatWork, an association for human-resources professionals. As telecommuting has become increasingly popular in recent years -- and as higher gas prices make commuting even more expensive -- millions of people are working in one state for employers in other states. Tax issues may arise over which state or states can tax a worker's income.
New York, a high-tax state that's home to many large corporations, has pursued out-of-state telecommuters aggressively. "By its silence, the Supreme Court permits other states to do the same," says Nicole Belson Goluboff, an attorney who has written extensively on telecommuting law. "Any state might find this attractive and go ahead and start taxing nonresidents."
A handful of other states, including Pennsylvania and Nebraska, already have rules similar to New York's.
The case at issue involved Thomas Huckaby, a computer specialist who lives in Nashville. Earlier this year, New York's highest court, in a 4-3 decision, said Mr. Huckaby owed New York taxes on all of his income from a New York employer -- even though Mr. Huckaby had spent only about 25% of his time in New York and the other 75% in Tennessee.
The Huckaby case involved a New York State tax-department rule affecting people who live in another state, work for a New York employer and occasionally come to New York on business. That rule says income from work performed out of state is taxable by New York unless it's done for the employer's "necessity." Mr. Huckaby acknowledged his employer didn't require him to work in Tennessee, says Peter L. Faber, a New York lawyer who represented him. Mr. Faber argued New York's "convenience" test violated state law and the U.S. Constitution by taxing income earned out of state.
The New York rule could have wide-ranging implications. It may affect not only people like Mr. Huckaby, but also others who live in neighboring states, work in New York and choose to do some of their work at home. "We need federal legislation" to protect both types of workers, Ms. Goluboff says.
Consider the case of Edward A. Zelinsky, a law-school professor who lives in New Haven, Conn., and teaches at a law school in New York City. He says New York taxed him on all his law-school wages even though he spent 60% of his time at home doing research, writing, and grading exams and papers. Prof. Zelinsky lost his case in New York's highest court, and the U.S. Supreme Court declined to review the decision in 2004.
New York adopted its rule many years ago. Officials were concerned about commuters who lived in a neighboring state, such as Connecticut, and brought work home on weekends, worked on Saturday and Sunday, and then claimed to owe New York tax on only five-sevenths of their income, instead of 100%.
Telecommuters might get a reprieve if Congress passes proposed legislation called the Telecommuter Tax Fairness Act. The bill, which seeks to prevent states from collecting taxes from employees for work performed outside that state, was sponsored by Democratic Sen. Christopher Dodd and Republican Rep. Christopher Shays, both from Connecticut. Under the bill, workers would have to be physically present and working in a state for that state to be allowed to collect income tax from employees.
Sen. Dodd said yesterday that the court's move "underscores the need" to take legislative action.
The Supreme Court announcement is not a decision on the case's merits. The lower-court ruling stands and could, of course, lead other states to enact such rules. But it doesn't mean that the court has decided the issue or that such laws will be upheld if appealed in the future. Copyright © 2005 Dow Jones & Company, Inc. All Rights Reserved.
at home vs office - i am in office
well, I really was referring to the MONSTER MANAGER that I have, who has her favorites here, and she assigns them the easy doctors who say the same thing over and over, you know. I have to do something. I am losing my SELF at this point, with no church and no family. The stuff on here about running out of work, my lack of computer savvy, all has me just frozen. MOre about in-office. Do you have little habits like talking out loud to the dr? Someone will complain about you. Do you ever say a cussword? Someone will complain. Do you ever sigh? Complaints. About age - I was offered 2 trans. positoins in San Diego before I came here. I had gone to a seminar about how to look for work over age 55, had revamped my resume and my "presenting" self, and it made all the difference. Things are way different than they were evern 10 years ago, you will be judged by someone younger than you, but in this line of work they do appreciate experience and reliability. And the computer doesn't care if you're pretty. It's not your age unless you are sickly. Don't give up!! if that's what you want.
If you had your very own office at home,
How would you decorate it? Anything specific you'd get? Wall color? Flooring? Curtains? Light fixture? Any feng shui motivational tips on color or spacing? It's your fantasy here, so let it out.
Where is your home office?
Mine is in my dining room. I have my computer on a desk in the corner of my formal dining room. I am thinking of moving it to a bedroom for less traffic and noise. I am curious - where is your home office and is it working for you?
Your home office
Do you have a room in your house that is solely dedicated to your work space, or do you work in another room that actually has another purpose as well (such as a bedroom)? If you have a multi-use room, do you feel that you have enough space to do your work efficiently?
You want Office XP pro or home at least
I just bought a new Dell and they didnt give me Word and told me something similar about works. I blew a gasket and then offered to return the computer since they didnt see fit to include the program as promised and they very quickly changed their tune and sent me Office XP Pro for no charge.
so stick to your guns and have them give you a copy when you buy your computer.
home office ?
I plan to use TurboTax Small Business this year since many of you seem to be satisfied with it. I will take a home office since I work exclusively at home as an IC. Have any of you had any problems with the IRS and taking a home office ? I have not taken one in the past because they said I could not even receive personal e-mail or surf the web if I did so in my office. I use the same e-mail for work and personal so I don't have to toggle between two different e-mail accounts. Besides, I only have one computer so would have to receive personal business on that computer even if separate accounts. I hope they change some of these ridiculous rules since I have no other place to work and have to use my own electricity, internet, etc that is unreimbursed by the company I work for. I use high-speed internet (required) also for work. Is this just lumped in with utilities? Last year I was an employee, so that is why I have so many questions (IC). Thanks in advance !
home office
My tax woman told me years ago that if I did not have a dedicated room, I could figure the amount of space -- say your computer and the usual thousand or so reference books, paper, storage, printer, file cabinets, plus the phone bill, or anything else like cleaning bills for a person or supplies -- as a percentage of the square footage of home. Deduction is the percentage. IMPORTANT: Good friend is a tax attorney, and he tells me it drives HIM nuts because the IRS changes the rules every year. So, be sure to get the most up-to-date regulations from the IRS, themselves. After all, where do the CPAs get their info? Rosie
I have my own decorated home office
And I LOVE it. Husband just painted it a sunny yellow not too long ago for me and I totally redecorated with a corner desk with hutch that I bought that is situated where I have a great view out my window to our front yard and road. My office is all done in a tropical theme, with a cute tropical valance and bamboo shade on my window. I have a wicker chair and trunk, tropical hanging greenery basket hanging from my ceiling, decorative shell ceiling hanger, a big palm tree sitting in a corner, 3 piece palm/mirror wall hanging, a live bamboo plant on the top shelf of my desk, palm tree designed vase and two big candle-holders. I also have a cute table top palm tree lamp.
I absolutely love my office and everyone that enters does as well. :D I spend SO much time in here I wanted it bright, cheery and something I would enjoy - and that I do. :D I feel very lucky.
I have a patriotic home office and
many houseplants.
Reasons for home office
I too have home office for tax purposes. Also, with friends and family knowing I work in an office at home, they seem to take my job more seriously. I am not just sitting at the dining room table "playing" at the computer.
Can you take home office deduction if you are sm
an employee and how would one guestimate if they would qualify? Looking into this option this year.
Home office deduction
No, but unreimbursed work-related expenses may be deduced on Schedule A.
nix the home office deduction
If you plan on selling your house later on. The deductions you claimed in previous years will be lost when you try to sell. So, if you were planning on selling for $150,000, but you claimed $500 a year in home-office deductions, per year, over ten years, that's $5000 you'll lose out at the end.
home office tax question
Doing taxes. To measure the square feet of my my home office, which is 10 x 12, do I just multiply, which would give me 120 square feet? Thank you!
My IC home office deductions came to only sm
$1100 because I own my house outright and, like you, have no real expenses because I work at home off the Internet. My health insurance premiums are low because it's lousy insurance.
People with high mortgages will have a higher deduction based on that. They may travel each day to get their work, etc. Every person's situation is different.
I think you did okay!
BTW, if anyone uses H&R Block, I strongly urge you to get the Peace of Mind benefit for $27. Mine came in handy for 2004 when the preparer made a big, big mistake caught by the IRS (I'm going to end up getting a refund of what the preparer said I owed in 2004!!!) This may be my last year with the blockheads, though. I should say I've gotten excellent service in the last 25 years, except for that one preparer last year and Block messing up on its own tax preparation.
home office and interruptions
I work out of my home doing medical transcription and have for quite some time. I love it except for the interruptions! I can't seem to get into the "zone" because of it and my production is down. Here is an example of what I find hard to deal with: Phone calls, contractors working on the house (one-time thing but still..), husband running the microwave (can't hear my voice files), husband in an out of the house on his days off, husband mowing the lawn right outside my office window. You get the picture. I have thought of moving my office to an upstairs bedroom but I really don't know if I would be gaining that much for all the trouble. A sound proof room would be nice!
I'm very discouraged right now. I would like to earn more money but it seems like an uphill battle! I have a hard time concentrating as it is (probably menopausal) and after so many interruptions in a day I feel like throwing in the towel!
How can I set up boundaries and keep them in place? Any suggestions would be welcomed!
home office location-sm
I will take another look at another location for my office but I do like it where it is because it is handy for me (when there is no visitors), convenient to the kitchen, bathroom (I only have1), and I can start the evening meal and still work, etc. Why can't anything be easy?
Work in office and home
The office provided me with software in order to hook up to the office over my DSL line. Just connect to the company's software and the computer works as if I was in the office exactly the same way. And anyone in the office can see what I have typed instantly! I love it! I would much prefer working at home than at the office however!!
Home Office Deduction
I rent my apartment. I have a home office, which is a room used soley for the purpose of an office, which is the restriction, cannot be part of living room, etc. I deduct portion of rent, all supplies, telephone, cell phone, electric, gas, and oil heat. I don't think your name has to be on the lease, just that you live there and use that room solely as an office. Also, if you travel to and from your job you can deduct mileage, oh and internet connection, which I use mainly for work. Hope that helps you.
Home Office vs In-House
What about transcription done in-house in an office or dept. where there is high traffic from MDs to janitors?
My dog watches me type and horror of all horrors, I usually have the dictation on speaker phone.
home office lighting
 Any advice about the new full spectrum lighting that supposedly resembles daylight? I rent my house, so can't install ceiling fixtures; can only use floor lamps and desk lamps. I also have pretty severe seasonal affective disorder and need as much light as I can get here in the gray midwest. The regular (incandescent) lights I've been using put off way too much heat in the summer and really don't provide good light in the winter. The compact flourescent bulbs don't seem to be bright enough. I'm thinking of trying the BlueMax full spectrum line. Any experience from you guys out there?
home office lighting
Thanks! I checked out the website and have emailed them for info. 
Working from home and not going to the office
I work for a local hospital and I have worked from home for 20 years now.
I would never never go back to an office setting unless there no other at-home jobs were out there.
I have a separate office and can watch my house from thieves, throw a load of laundry in, put supper on early, etc. I do take my two 15 minute breaks and 30 minutes for lunch just like I am in the office. If I need to run a short errand I save my breaks and lunch and combine the two and have an hour to get back.
I have three grown children but I still get phone calls all day and have a separate phone line for them if they need me and screen other calls on regular phone line.
You just have to learn to kind of pace yourself. I do sometimes type in my PJs but not too often because my husband runs his business from our home and Fedex and UPS come here all of the time.
Just set a space aside if you can from the other part of the house. I try to stick to a rule for everyone "if they see my door closed to my office, then they try not to bother me unless it is absolute necessary."
You will love it if you ever try it.I really do not miss the office and its politics.
Sometimes being at home we home MTs do not get the necessary information like we should have. Also I can count part of one phone line and my office space and books and whatever it takes to do my job on income tax. Hope this helps. I do not think that you would regret it.
Home Office Deduction
I have 2 jobs, one as an employee and one as an IC. I was living in a house with a separate room for an office. I have now moved to an apartment. Will I still be able to deduct some portion of my rent and utilities if I don't have a separate office? I would still be able to deduct office supplies and a percentage of internet and cell phone charges, correct? Thanks in advance for your advice.
Another problem with home office deduction
It has to be exclusive use, so you can't take it if you use the area for other activities than strictly work. Also, I did the depreciation thing with my home and it can come back to bite you if you sell the house and make a profit.
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