Tax Deductions and Credits You Can Deduct That? 6 Surprising Tax Deduction Tips for Telecommuters Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by Brie Weiler Reynolds Published Apr 12, 2017 - [Updated Jun 5, 2019] 3 min read Working remotely offers professionals quite a few perks. No commuting, a comfortable office space and less stress are typically what comes to mind. But what about the tax benefits of working from home? Those exist, too! Let’s review some of the more surprising tax deductions that telecommuters may be able to claim and how each of them works. Home Office Space Many people still see the home office deduction as a potential red flag for auditing, but as telework continues to grow in usage, this is no longer the case. As long as you can meet the IRS criteria for the home office deduction, you don’t need to worry that taking it puts you at higher risk for being audited. Below are some of the home expenses that you may be able to deduct as part of the home office deduction based on the portion of your home used for business. Property Taxes: If you work from home, and you own the home, a percentage of your property taxes can be deducted as part of the home office deduction. The percentage is based on the percentage of space in your house (in square feet) used for your work, and it must be used exclusively for that purpose. Mortgage Interest: Just like property taxes, if you own your home and pay mortgage interest, you may be able to deduct a percentage of that cost as part of your home office deduction. Calculate the size of your home office (or the space in your home from which you work) and what percentage of your overall house size that space takes up. Utilities: Now we’re starting to sound a bit like a broken record, but a percentage of the cost of your utilities like heat, electricity, and internet, can be deducted as part of the home office deduction, too. The IRS also allows you to take a “Simplified Home Office Deduction” that gives you a flat deduction of up to $1,500 based on $5 per square foot up to 300 square feet. Office Décor: Furniture used in your home office (desk, chair, table, lamp, artwork, etc.) can be deducted, as can improvements like painting, floor refinishing, and other remodels. Again, it’s all about the use of the space–if you’re using it solely for business purposes, it’s deductible. Foreign Earned Income Exclusion (FEIE) Here’s a tip that applies to you if you live abroad and work remotely outside of the United States. If you’ve made foreign earned income, you may be able to exclude a certain portion of your income from U.S. tax. Not sure if you’ve made “foreign earned income?” Here’s how the IRS defines it: “foreign earned income is income you receive for services you perform in a foreign country during a period your tax home is in a foreign country and during which you meet either the bona fide residence test or the physical presence test.” Don’t worry about knowing these tax rules if you are a telecommuter. TurboTax will ask you simple questions and give you the tax deductions and credits you deserve based on your answers. Previous Post How Do I Know if I Should Amend My Tax… Next Post Is This Deductible? My Volunteer Work Written by Brie Weiler Reynolds Brie Weiler Reynolds is the Senior Career Specialist at FlexJobs, the award-winning site for telecommuting, flexible schedule, and freelance job listings. She aims to provide practical information and resources to help people overcome their roadblocks and discover career happiness. With a background in human resources and career advising, Brie has 12 years experience working with job seekers and employers, and she offers career, hiring, and work-life balance advice through the FlexJobs Blog and media outlets like Fast Company, Forbes, and NBC News. Find Brie on Twitter, @briewreynolds. More from Brie Weiler Reynolds Leave a ReplyCancel reply Browse Related Articles Crypto Understanding Crypto and Capital Gains Work 7 Things You Need to Know About the New Business Report… Work Using Form 8829 to Write-Off Business Use of Your Home Tax Tips Roth 403(b) vs. Roth IRA: Which Should You Invest In? Life Interest Rates, Inflation, and Your Taxes Investments Essential Tax Tips for Maximizing Investment Gains Uncategorized TurboTax is Partnering with Saweetie to Elevate Hoop Dr… Business Small Business Owners: Optimize Your Taxes with a Mid-Y… Small Business The Benefits of Employing Your Children and the Tax Bre… Income and Investments Are Olympics Winnings Taxed?