Home Office Deduction

As more employees worked from home in 2020, they may be asking if they can deduct home office and other unreimbursed employee costs. This deduction is no longer allowed for employees after the tax changes that passed in 2017.

The deduction is available to self-employed and independent contractors on Schedule C. They can deduct a room or space in their home that is used regularly and exclusively at their principal place of business.

https://www.irs.gov/businesses/small-businesses-self-employed/home-office-deduction

How Long Should I Keep Records?

Keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later, if you file a claim for credit or refund after you file your return. Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction.

For more information on how long to hold specific records see the below IRS link:

https://www.irs.gov/businesses/small-businesses-self-employed/how-long-should-i-keep-records#:~:text=Keep%20records%20for%203%20years%20from%20the%20date%20you%20filed,securities%20or%20bad%20debt%20deduction.