Can I Deduct My Home Office?

A client asks:

“I was wondering if I can write off working from home as some sort of a tax deduction? I have been working from home all year and was hoping it would play an effect for 2017 taxes.”

Unreimbursed employee expenses are added to itemized deductions. You will already itemize the mortgage interest and property taxes so that really leaves you with the following:

Internet
cellphone if you need it for work
office supplies
home office: percent of home used as home office (if your office is 20% of your home you would take 20% of the following):
utilities
insurance
repairs and maintenance

Now depending how much the above expenses total, you might be able to add some of it to your itemized deductions. The IRS allows you to take the amount of those above 2% of your income. So if your income for the year was $80k, then you could deduct the amount over $1600. If your unreimbursed employee expenses were $2200, you could take $600 as a deduction.