Due to COVID-19, more people are working from home.
W-2 employees
In tax year 2018, W-2 employees were no longer able to claim expenses for the Business Use of home. You are no longer able to claim certain expenses such as your internet, electricity, etc. on the return. If you incur such expenses, you may want to ask your employer to reimburse you for these expenses.
1099 Employees or Self-employed Individuals
As a 1099 employee (an employee that is issued a 1099-NEC), you are considered a contractor and are self-employed in the eyes of the IRS. This means you are able to claim your ordinary and necessary business expenses. Some of the expenses you may be able to claim are:
- Business Use of Home
- Utilities
- Car and Truck Expenses
- Contract labor (paid to another individual)
- Advertising
- Taxes and licensing fees
- Supplies
- Other miscellaneous expenses.
Statutory employees
If your employer paid you on a W-2 but checked the box for Statutory Employee (line 13), you must pull the income to a Schedule C to report it. Using the Schedule C, you can claim the ordinary and necessary expenses you incurred in generating your income (See above 1099 Employees).