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Working from home? You may qualify for tax savings

Have you switched from renting office space to working from home to run your small business? 

Freelancers, entrepreneurs and other self-employed people affected by the COVID pandemic may now qualify for the home office deduction.  If you use part of your home solely for business-related activity, you can write off certain expenses as long they meet the IRS' requirements.

Check the IRS requirements for working from home

As a service to our readers, we want to bring the IRS Rules to your attention as there are many nuances to the qualification rules.  For instance, just because you work from home, it doesn't mean you qualify.  Employees are exempt from the deduction. 

A few other highlights:

Keep good records and know the tax code details 

Like we said, the rules for qualification can be tricky, so make sure you read the details for carefully.  Claiming the home office deduction can be an IRS audit red flag as many people try to take this deduction without solid records of expenses or a qualifying situation.  Be sure to talk with your accountant if you need more direction.  You can also ask your fiduciary financial advisor for more information.  

If you run your business from home, please read this information published by the IRS.  If you're not yet working from home but are considering working to earn extra income during retirement, be sure to keep this possible deduction in mind.  The expense saving of launching your self-employed adventure from home could be the extra push you need to try it out! 

Will you take up a new passion or start a business in retirement?  Learn the secrets to a fulfilling next chapter in my new book, Retirement Secrets.   Sign up to be notified when it launches.

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