Among the things that our agents enjoy about working from home, tax deductions are at the top of the list. According to H&R Block, over 4 million people don't claim the tax deductions for which they're eligible.
You are able to save a lot of money by effectively writing off services and products you utilize for work at home. Here are some common examples of itemized deductions you can use as a home business owner:
If you’re going to work from home and you need furniture that is exclusively for work (and not something the kids occasionally use) such as a filing cabinet, desk and office chair, you may be able to write them off, or deduct them from your taxable income.
Additionally, if you need a computer, printer, fax machine, etc., these items may also be eligible for a tax write-off.
If you use your home Internet service for work, and the Internet is a necessity for you to complete your work, then it is possible you could write off part or most of your monthly service fee.
If you are renting your home and utilizing a portion of it exclusively for business (say, a spare bedroom or above-garage office), you may be able to write-off a portion of this as well.
You may be eligible to deduct up to half of your self-employment tax, which can be very helpful come tax time.Of course, you want to be honest with all of the uses for all of these examples. It is possible to get audited, and you will have to answer for everything that you have claimed on your taxes. It is important to keep records as well, such as receipts, to protect yourself in the event of an audit.