The article discusses changes to remote work dynamics since the pandemic, revealing that while 14% of adults are now working from home, most cannot claim the home office deduction. This deduction applies mainly to self-employed individuals or independent contractors who have a designated workspace solely for business use. Traditional W-2 remote employees are typically ineligible, although there are exceptions if they operate side hustles from home. Understanding IRS rules regarding employment categorization is crucial to determining eligibility for tax deductions related to home office expenses.
Remote work has transformed traditional office settings, yet most remote employees cannot claim a home office deduction unless they are self-employed.
Only self-employed individuals and independent contractors can generally claim a home office deduction; traditional W-2 employees have limited eligibility.
The IRS determines home office deduction eligibility based on employment categorization and whether the space is used exclusively for business activities.
W-2 remote employees may only benefit from remote work in terms of comfort; true tax deductions are reserved for those who run their own businesses.
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