The recent pandemic had lots of people scrambling to make way for their work equipment in their living rooms and bedrooms as they got ready to transition from working at the office to working from home. As the situation got better, a huge chunk of the working population decided to continue working from home. Some even went as far as converting their spare rooms into home offices or building an extra room to use as their workplace at home.
Speaking of working from home, did you know that remote workers have certain benefits when it comes to taxes? Specifically, things that you can write off as taxes while working from the comfort of your own home. Here’s a list.
#1 Home Office Expenses
You don’t have to cram everything into your bedroom and work where you sleep. Go ahead and turn that spare room into a home office. If you have the budget for it, you might even want to consider building an extension off of the main house to use as your home office. As long as you make the right computations and file the correct paperwork, you can get returns on these expenses so you can comfortably work at home without sacrificing your personal space. Taxable home office expenses can also include utilities, rent (if you’re a renter), mortgage (if you’re a homeowner), insurance, repairs, and more.
#2 Home Office Supplies and Equipment
Office desks, chairs, computers, printers, scanners, -- these can all be written off as tax if you use them at least 50% of the time for your business. The same is true for your phone bills and internet bills so feel free to upgrade your home internet plan to a business one or at least one with better, faster speed. Aside from your office equipment, office supplies are covered, too, as long as they’re necessary for work.
#3 Software and Tech
Computer lagging because the workload is just too heavy for it? Go for that upgrade and write if off. Anything tech-related, as long as used for work or business, can be taxable if you file the right paperwork for it. This also includes paid versions of software that you use, whether it’s an app on your phone or your computer that helps you run your business.
#4 Travel, Training, Food, and Leisure
Working from home doesn’t mean you don’t do business outside of your house, right? There are client meetings you have to go to and seminars you have to attend to keep up with the latest in your line of work. There are also team buildings and many other work-related events that require you to spend money (usually out of pocket) that you can include in your taxes. Any food, travel, training, and leisure expenses you incur can be included when you file for taxes as long as they are related to your job.
Other things you can write off as taxes include fees for professional services, insurance, marketing, and miscellaneous fees. Make sure to file your taxes properly to avoid penalties. You might end up paying more instead of saving money if you don’t.