If you’re one of the millions of American workers who telecommute from home, then you don’t want to miss out on the many tax deductions that apply to this large sector of the workforce. In addition to the flexible work schedule and casual dress code, there are tax benefits to being a telecommuting employee.
As you might expect, many occupational expenses such as office equipment, trade association dues, and gas mileage for travel do fall within the range of telecommuter deductions. However, it’s important to understand when such expenses meet the necessary criteria and when they do not. Business equipment & supplies, for example, are only deductible if they cost more than $100 and are likely to last longer than a year. The rules vary from category to category, so it’s vital to record all of the money you spend, hang on to receipts, and stay on top of changing tax laws from year to year.
Depending on your line of work, you could be paying a hefty price to maintain your membership in professional organizations, attend out-of-town meetings, or further your education. Fortunately, tax deductions are available in each of these areas, and others, helping to reimburse you for the various costs of doing business.
Even the expenses you incur to set up a home office are not necessarily deductible. To clarify the rules and ensure accurate telecommuting deductions on your tax returns, turn to Taxation Solutions, Inc, your one-stop source for tax help in Arlington and beyond.