Fedweek

The IRS has issued a statement calling attention to a number of special considerations for filing tax returns for the 2020 tax year, including the limits on the availability of a home office deduction.

That’s an issue of interest to many federal employees – along with many private sector employees – who teleworked from home extensively through the year and in many cases are continuing to do so.

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“The home office deduction is available to qualifying self-employed taxpayers, independent contractors and those working in the gig economy,” the notice says. “However, the [2017] Tax Cuts and Jobs Act suspended the business-use-of-home deduction from 2018 through 2025 for employees. Employees who receive a paycheck or a W-2 exclusively from an employer are not eligible for the deduction, even if they are currently working from home.”

The statement reflects guidance issued last autumn in IRS Publication 587 (at https://www.irs.gov/forms-pubs/about-publication-587).

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