People who telecommute often incur expenses that aren’t covered by their employers. If you find yourself in this position, you may be wondering whether you can deduct some of these expenses on your taxes. The answer is yes! Telecommuters are eligible for a variety of different IRS tax deductions.
Equipment and Supplies
If you telecommute, you can deduct the cost of day-to-day supplies and equipment that are ordinary and necessary to complete your work, but this is only true if these expenses are not reimbursed by your employer. You can also deduct the cost of supplies that are expected to last longer than a year and cost more than $100, but you need to record these separately, as they will be covered differently on your tax return than day-to-day supplies.
Telecommuters who are required to travel overnight on business trips are able to deduct some expenses accrued during these trips. Deductible expenses include transportation, lodging, meals, and other miscellaneous items (such as valet and laundry). If you are away on a continuing education trip that is related to your job, you can also deduct these expenses on your return. As with other deductible expenses, these can only be deducted if they are not reimbursed by your employer.
If you’re a telecommuter looking to reduce your overall tax liability, Taxation Solutions, Inc. is here to offer you tax help. Get in touch with our team of qualified tax resolution specialists right away, and we’ll help you determine which tax deductions are available to you.