Working From Home This Year? Here’s What You Can’t Claim On Taxes | Global News Avenue

Once tax filing season begins, taxpayers will start looking for ways to reduce the taxes they owe, including those remote workers who find themselves spending a lot of money in 2024 to maintain their home offices.

Although many companies have begun Ask employees to return to the officeHybrid and remote working remained prevalent last year. According to Owl Lab’s annual State of Hybrid Work report, more than one-third of employees will still be fully remote or hybrid by 2024.

However, if a remote employee incurs expenses such as an increase in their electric bill or the purchase of a new office chair, they cannot deduct these expenses from their taxes. 2018, tax cuts and jobs act Broadly eliminates the ability of remote employees to deduct home office expenses. This policy will continue until the TCJA expires in 2025, but incoming President Donald Trump has pledged extension tax bill.

However, tax experts say there may be other steps remote workers can take to recoup costs.

Remote workers still have options to recoup home office expenses

While remote workers employed by companies cannot deduct home office expenses, they can claim tax-free reimbursement from their employer.

Many companies will provide subsidies for remote workers; according to the Society for Human Resource Management’s Employee Benefits Survey, 56% of companies will provide work equipment reimbursement by 2024.

While the federal government does not require compensation unless home office expenses bring an employee’s income below the minimum wage, 11 states do require companies to reimburse employees for necessary expenses, People Keep reported.

If company policy is responsible planningthese reimbursements are tax-free. These plans include formal spending policies, and employees are required to provide the company with documentation on spending.

Taxpayers should be cautious when using this tactic and carefully review employee contract terms and understand the company’s reimbursement policy.

“If your employer reimburses you for expenses, then technically the monitor, the desk, the chair actually belongs to your employer,” said Crystal Stranger, registered agent and CEO of Optic Tax. “So what happens if you leave?”