Tax Tips For Home Office

by Tom Simplot

Feb 28, 2016

Many of today’s apartment dwellers are also using their homes as a full-time or part time office. For those small business owners or teleworkers, there are some great tax benefits that you may be able to take advantage of and save money. Additionally, educators have earned special tax benefits, and it’s valuable to check in with a tax adviser to see if you qualify.

 Classroom expenses. Educators often make investments in their own classrooms when resources are tight. It’s best to keep those receipts, and you can deduct up to $250 for classroom items such as supplies and books.

 Home office expenses. Workers who use their homes as an office may be able to deduct a percentage of rent and utilities, phone costs and more. If you are claiming your rental home as a home office, be sure to work with a tax adviser to help you calculate the space and the percentages for utilities.

 Moving expenses. If you moved for a new job, more than 50 miles from your last job, some of the expenses associated with the move may be deductible on your federal taxes.

 Car expenses. For those of us who use our cars for business, it’s worth keeping track of miles traveled for work. Your tax preparer can help you figure out which car expense deduction to take.

 It’s important to consult your tax adviser or preparer to confirm what tax breaks you can take advantage of this year. There are a number of discounted and even free tax preparation services available from community centers, schools and nonprofits.