But the question of whether to take a home office deduction is a complicated one. And if you are a telecommuting employee (as opposed to a self-employed business owner) additional rules apply.
Telecommuting Employees vs. Self-Employed
When you are a telecommuting employee, not an independent contractor, you must meet additional requirements over and above the usual home office deduction requirements, such as using the home office space regularly and exclusively for business.
Telecommuting employees must be using their home offices for their employer's convenience, not for their own. So if you are a virtual call center agent, employed by a company that saves money on office space by hiring agents to work from home, then you would likely meet this particular requirement.
If your employer allows you to work from home, even though it has office space available, so that you can avoid a long commute, you probably would not qualify.
But keep in mind that, even if you work at home for the convenience of your employer, you can't rent part of your home to your employer and then use that area to work for your employer and still claim the home office deduction.
How to File for a Home Office Deduction
Use IRS Form 8829 to calculate your home office deduction in you are an independent contractor filing a Schedule C. However, if you are a telecommuting employee, use Form 2106 to calculation the deduction and then enter it on Schedule A. This means you must itemize and cannot take the standard deduction if you wish to take a home office deduction. For more information on the home office deduction, see IRS Publication 587.
Explore more issues related to this deduction on the Home Office Deduction FAQ.
