![]() ![]() Only “Exceptional” employees qualify for a 2020 home office deduction. Until then, you won’t be missing out on any home office deduction because almost no one else can deduct those expenses- no one but four groups of employees who are the exception to the rule. Unreimbursed employee expenses include job-related mileage, long-distance travel for work, union and association dues, continued education costs required for your current job, job search expenses (for the same occupation), a home computer, and a home office used at the convenience of your employer.Īll miscellaneous itemized deductions (including the home office deduction) will return in 2026. ![]() In 2015, those who itemize deductions did so to the tune of $96 billion in unreimbursed employee expenses. Deducting home office expenses and other business-related expenses was beloved. You’re not the only one who is disappointed by this change. Which is a bummer with so many of us setting up our new home offices thanks to COVID, right? That means, from 2018 to 2026, employees cannot deduct home office expenses unless they are a member of four protected groups. Sadly, one you might miss out on is a home office tax deduction in 2020, since the Tax Cuts and Jobs Act eliminated unreimbursed employee expenses for almost all W-2 workers in 2017. While employers are under no legal obligation to inform their employees of this benefit, you and your school may elect to inform your school’s employees of this tax benefit, so that “eligible educators” may maximize their deductions as part of their upcoming 2020 tax filings.If you’re anything like us, you’re already thinking about what deductions you can be making come tax season. In addition to the limitations on the type of expenses that qualify for coverage under the Revenue Procedure, and thus for deduction from “eligible educators’” gross income, the IRS limits the total deduction for covered expenses to $250 for each “eligible educator.” Therefore, two “eligible educators” who file jointly may permissibly deduct up to $500. In order for an expense to qualify for deduction the expense must satisfy each of the following three conditions: (1) It was not reimbursed (i.e., was an out-of-pocket expense) (2) It was incurred after Maand (3) It was for the purchase of an item that was or will be used for the prevention of the spread of COVID-19 in the classroom. Other items recommended by the Centers for Disease Control and Prevention (CDC) to be used for the prevention of the spread of COVID-19 Physical barriers (for example, clear plexiglass) Tape, paint, or chalk to guide social distancing The IRS provides the following list of expenses that would qualify for the deduction: The IRS guidance expressly provides that “eligible educators” may deduct expenses related to the prevention of the spread of COVID-19 in the classroom. “Eligible educators” may permissibly deduct from their gross income unreimbursed expenses incurred after March 12, 2020, for certain “COVID-19 Protective Items.” In order to qualify for the deduction, the individual must be an “eligible educator,” which means that the individual is a “kindergarten through grade 12 teacher, instructor, counselor, principal, or aide in a school” who works at least 900 hours during a school year. 2021-15 entitles “eligible educators” to deduct from their 2020 gross income, certain expenses incurred in order to prevent or limit the spread of the virus that causes COVID-19 in their classrooms. On February 4, 2021, the Internal Revenue Service (IRS) issued Revenue Procedure (Rev.
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