For those who’ve been working from residence for months amid the COVID-19 pandemic and are hoping for a tax break for residence workplace bills and tools, WOKV’s Shopper Warrior Clark Howard says you could possibly be out of luck.
“If you’re employed by any individual and getting a W-2 from them, you’re not going to have the ability to deduct residence workplace bills, tools you purchase, something like that. So, it doesn’t apply to you,” says Howard.
However Howard says there’s a sizeable personnel these tax breaks do apply to- unbiased contractors.
“So, if you’re an unbiased contractor, you’re answerable for your individual taxes, you’ll be able to deduct just about all of your authentic bills concerned with doing that work from your house, as a substitute of on the individuals’s places of work that you simply’re doing all of your work for usually exterior coronavirus,” Howard says.
Howard says if you happen to fall into the primary class of individuals and are employed by any individual, the actual benefit of working from residence isn’t having to do the day by day commute.
Get more consumer news and advice in Clark Howard’s latest on-demand podcasts.
