A community of 30,000 US Transcriptionist serving Medical Transcription Industry

On taxes, does anyone claim the home office deduction? - Kiki

Posted: Mar 15, 2012

I'm doing my taxes on TurboTax and it says you can claim the home office deduction if you work at home for the "benefit of your employer, ie, if no office or desk is provided." Does this apply to us ? I'm worried about taking the deduction and getting audited or something. I've never taken it in the past. Wondering if it's even worth it for me if we indeed can take it (I don't own a home).

I do - but we own

[ In Reply To ..]
And we itemize everything. Hubby and I both work from home. Our accountant claims a portion of the electric bill, mortgage payment, phone bill and anything else I can scrounge up (lightbulbs, batteries, trash bags). Hate paying taxes.

Taxes - Silly Sue

[ In Reply To ..]
Is this just for independent contractors or all home medical transcribers.

We rent and its the same process (sm) - IC

[ In Reply To ..]
We're renters but we're allowed the same deductions per our accountant. We keep receipts for EVERYTHING, even 50% of our "coffee" budget is allowable. Our accountant calculated the square footage of our apartment and monthly rent, then what percentage of our living quarters was officially "working space", etc.

Make sure to keep receipts for every single little item you purchase throughout the year for your business, even Post-Its, because it all counts at tax time :-)

Home Office deductions - greyhound mom

[ In Reply To ..]
I try to claim everything possible. I have someone do the taxes. I have my office in the basement, but not the entire basement. My tax person had us measure what portion of the basement we use. Also, of course, I claim mileage when I have to go to the offices of the doctors. I even claim mileage if I have to pick up supplies for my business.

I do - too

[ In Reply To ..]
I have someone do my taxes and claim utilities, property taxes, home insurance, etc. I believe you have to have a dedicated space for just your office, but I could be wrong. My tax person asked for the dimensions of my office.

you're right about the dedicated space - ...

[ In Reply To ..]
it doesnt have to be an entire room, but whatever the space is, it can only be used for your job and nothing else. I dont claim it. I have a lot of unrelated crap all over the place so I dont think I have any space that is only used for work.

Yes, indeed. - Another greyhound mom!

[ In Reply To ..]
Actually, I didn't this year because I now use my office space for some personal things as well, and the space is so small, comparatively speaking, not worth the hassle. However, prior to this year, you bet I have. Just keep all your ducks in a row and keep those receipts, keep track of gas mileage, and don't let your kids play on your work computer (if you own your own) with their games, etc. It doesn't have to be an entire room; you can measure the space around your desk, file cabinet, and whatever you use for your work.

I also have someone do my taxes for the above reasons of percentages of your utilities, depreciation of house/equipment, etc. It all adds up.

So, in conclusion, DOCUMENTATION, DOCUMENTATION, DOCUMENTATION! Not shouting, just emphasis... :)

P.S. As far as just renting, you may have to have a minimum amount of deductions as a total. I haven't rented in years, so things could have changed greatly since then. It would be worth it to discuss with an accountant.

Yes you can. - Blue Star

[ In Reply To ..]
I have been doing it for years. We own a home, but as long as it is a dedicated space for your office, you can take the deduction (you can also claim a portion of your utilities, phone, etc.). It goes by the percentage of your office space versus the size of your home. Good luck.

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