Post # 1
So I just posted how I can’t stand my current job anymore. Going to talk to the hubs tonight. Thinking about putting in my 2 weeks notice as soon as tomorrow.
Ok, maybe someone can give me some info.
Years ago my division had an office not far from where I live. Management decided to close it, move the warehouse and all the inventory to CA. People that worked out of our office then moved to home offices. It’s been my understanding that if you work from a home office, and if work can’t provide you with somewhere to go to work, you can claim your home office on your taxes. I do office work from home. I don’t ship product from my house, or see customers here.
So some years ago I successfully was able to write off my office on my taxes. It wasn’t a huge amount keep in mind. So the next year I got a letter from the IRS asking for a letter from my employer acknowledging I have a home office. I thought, no problem, right?? I asked HR for that letter and he brushed me off completely. The VP of my division asked for the letter and we never got one. I got some BS excuse from HR. So some years passed and I didn’t write off my office.
Last year I got upset and asked again as work only pays for my phone line and internet. HR gave some line like he wasn’t sure why and to ask the head of accounting. Well, that went dead again. I asked again and he said something like I couldn’t get that letter because of something to do with my state and taxes.
The corp office is in NY, my division is in CA. I’m in another state.
Is there ANY truth to this? It’s not like since I have a home office, we’ll need to charge PA sales tax to customers. Or am I just getting the shaft?? THANKS BEES
Post # 2
Not sure how tax reform has impacted this so take this with a grain of salt: You can deduct home office expenses, only to the extent they are used for business purposes. Pub 587 covers this, but it may be updated/followed up on with reform. I am a bit rusty because I do corporate tax accounting as my day job.
The space needs to be used exclusively for work (ie – not your dining room table). The tricky part is that you can’t write off an office that you use post-work to wrap things up after leaving the office. It needs to be an office you are using “at the convenience of your employer” – ie: you work in another state where they don’t have an office for you, so you work remotely from home. It also needs to be your main hub for work – which in your case seems to be the case!
So yes, I would assume you could deduct the corresponding portion of your bills and expenses. I do not know why HR wouldn’t give you the necessary letter. You can also choose to deduct $5 x office sqft, which is the IRS’s quick calc option for the deduciton if you want to! I would continue to bug HR about it, I would want the letter with my W2 every year.
Post # 3
Also all of this is based on federal taxes, I am not sure how California impacts the state tax deduction but I don’t know why it would be impacting your federal tax write off… States can’t override federal law.
Post # 4
Thanks Taylor. Right, I use a spare bedroom (40hrs/wk) soley as a home office. There’s nothing in here aside from office equipment. No spare bed or anything. The only chair is my office chair. 🙁
I wasn’t aware you can deduct a flat $5/sqft, thanks for that info. It’s too late for this year though. 🙂
I think they’re just giving me the shaft or for whatever reason they’re benefiting from not giving me that letter.
Post # 5
Yeah they seem to be giving you the run-around. Your office is definitely qualified and I don’t know what benefit they could possibly be getting (other than being lazy). They can still deduct your internet/home phone and you would be able to deduct your personally incurred expenses, this shouldn’t be such a big deal! Ugh HR.
Post # 6
Not sure from the HR standpoint why they wouldn’t give you the letter, but I’m a tax accountant and I can tell you that the home office deduction is among one of the most audited deductions there is. It’s definitely helpful that you only use that room as a home office- probably the flat $5/square foot would’ve been the best way to go. You might still get audited for that though, and I’m assuming the letter from your employer would be needed to verify.