NASHVILLE, Tenn. (WTVF) — The COVID-19 pandemic has transformed many people's homes into temporary offices, but experts say you should think twice before using that home office as a tax write off.
Tax experts say if you use your temporary "home office" as a tax write off, you could actually end up owing more money due to a tax act that was passed two years ago.
Under the legislation, if you're still employed but required to work at home because of the pandemic, there are no tax benefits. This means you can't use your personal laptop, rent or utilities as a tax write off. However, if you're self-employed, such as a person who has their own business from home, then tax professionals say you are eligible for a tax deduction.
Despite this law, tax experts believe many people will make mistakes when it's time to do this year's taxes.
"I do think there will be folks who will try to claim these expenses when they itemize or add some sort of miscellaneous deduction and they're just not going to be allowed," said tax professional Scott Rinehart. "They may get a letter from the IRS at some point saying, 'hey, you owe us some money.'"
Experts recommend you keep track of all your expenses, use free tax sources online as well as the IRS.
What is the rebound?
As Middle Tennessee works to rebound from the impact of the Coronavirus, we want to help. Whether it's getting back to work, making ends meet during this uncertain time, or managing the pressure, we're committed to finding solution. In addition, we want to tell your stories of hope, inspiration, and creativity as Middle Tennessee starts to rebound.
Find more in the sections below
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Safely Back to School
How schools are changing, and what you can do to help your child get the most from their education, in-person or virtual -
Making Ends Meet
Find help on topics from rent to food to new belt-tightening techniques -
Managing the Pressure
Feeling isolated or frustrated? Learn ways to connect with people virtually, get counseling or manage your stress. -
Doing What’s Right
Keep track of the way people are spending your tax dollars and treating your community. -
State of Education
Find ways to cope with the new normal around schools and celebrate students’ success in the age of Coronavirus. -
We're Open Y'all
Support local businesses doing their best to stay open and serve their customers during Covid.
