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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15595
Experience:  15years with H & R Block. Divisional leader, Instructor
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1/3 of my income was derived from work at home. Can

Customer Question

1/3 of my income for 2015 was derived from work at home. Can I deduct for this (rent, i.e.) portion of my income? If so, what form do I use? (And, I assume, this is attached to the standard 1040?)
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.
HelloIf your work at home was as an employee or self employed you need to use form 8829 Business use of home to report.Generally taxpayers have computed the business use of home deduction by allocating the total expenses of the home to the percentage of the home floor space used for business. However, a qualified daycare provider who does not use his or her home exclusively for business purposes must figure the percentage based on the amount of time the applicable portion of the home is used for business. Self-employed taxpayers filing Form 1040, Schedule C (PDF), Profit or Loss From Business (Sole Proprietorship)first compute this deduction on Form 8829 (PDF), Expenses for Business Use of Your Home.You can still figure the deduction using the regular method, many taxpayers may find the optional safe harbor method less burdensome. Beginning in 2013, Revenue Procedure 2013-13 allows qualifying taxpayers to use a prescribed rate of $5 per square foot of the portion of the home used for business (up to a maximum of 300 square feet) to compute the business use of home deduction. Under this safe harbor method, depreciation is treated as zero and the taxpayer claims the deduction directly on Form 1040, Schedule C. Instead of using Form 8829, the taxpayer indicates the taxpayer’s election to use the safe harbor option by making two entries directly on the Schedule C for the square footage of the home and the square footage of the office. Deductions attributable to the home that are otherwise allowable without regard to business use (such as qualified residence interest, property taxes, and casualty losses) are allowed in full on Form 1040, Schedule A (PDF), Itemized Deductions.You are required to click a positive rating if I am to be credited with the response.You have to actively click on a rating and click submit. Smiley Faces or Stars.