Hot Topics for Your 2020 Tax Season
We Asked Some of the Experts .... How Will COVID-19 Impact Taxes ?
Can people working from home claim a home office deduction on their 2020 taxes ?
Due to the pandemic , millions of people have transitioned from working in an office on a daily basis to working from their homes . They ’ ve set up home workspaces , upgraded their Wi-Fi , and have bought pricey new computers , printers , and other office supplies . So , can people who worked from home in 2020 claim a home office deduction or deduct those work supplies on their taxes ? Unfortunately , for most employees , the answer is no .
Prior to 2017 , employees who maintained a home office could deduct certain businessrelated expenses on their taxes . But the Tax Cuts and Jobs Act eliminated the home office deduction for employees who work from home . Currently , employers can reimburse their employees ’ home office expenses through an accountable plan or by designating the reimbursement as a disaster relief payment .
However , for those who work as independent contractors , these individuals can still claim business-related expenses on their taxes ( ex : utilities , insurance , property depreciation ).
Independent contractors can also access selfemployment tax deductions to lower their taxable income .
Will the stimulus checks affect my income taxes ?
The IRS has issued tens of millions of stimulus payments since the CARES Act went into effect last March . The stimulus checks , money transferred from the federal government directly to households , are designed to stimulate the economy and help those dealing with COVID-19-related financial issues . But many wonder whether
10 February / March 2021