5 Most Popular Remote Work Tax Write-Offs
Oh gosh, is it tax season already?
Doing your taxes as a remote worker, especially a remote worker who is self-employed, can be intimidating. I certainly cringe a little a bit when I think about the tax process and I think other remote workers can agree-taxes are scary.
I think the belief that taxes are scary stems from most of us not receiving any kind of formal training on how to do taxes at any point in our lives. Now as adults, we have no idea where to even start when it comes to taxes.
Fortunately, online services and chain tax stores make it fairly simple to file your taxes these days. Here are a few write-offs to ask about when you’re ready to file.
Rent or Mortgage Costs
If you rent or own a home and you work in your home, you can write that living expense off. Because you work from home, you most likely have some sort of dedicated space to work in. You may even be fortunate enough to have your own home office.
While there is some math involved to calculate square footage of your work-from-home space, it’s worth mentioning come tax time. This can result in a pretty worthwhile deduction. This is especially true if your rent or mortgage payment is on the steeper side ($1,200+). The higher the cost of housing, the more your WFH space is going to cost, thus the bigger write off you can benefit from.
Utilities
Your work from home space also has to have some sort of electricity and internet in order for you to be able to work there. This means you can write off a portion of those utility bills too. Depending on the area you live in, and the internet requirements you need, this could be a hefty deduction to claim.
Every penny counts come tax time, so mention it even if you think it will be insignificant. Smaller deductions add up in the long run. While it may not feel like it’s making a dent in your deductions now, when it’s all said and done you’ll be glad you counted this one.
Laptops, Gadgets, Phones, and Programs For Work
Any equipment you need in order to do your job can be claimed on your taxes as a deduction. Think about it. A laptop or desktop computer is a no brainer when it comes to working from home. A phone makes sense too because you need to communicate and be available for work conversations.
Don’t forget any subscriptions you need to programs, any additional gear or supplies like pens, a webcam, paper, a printer. Anything that you use for work you can include in your list of deductions. This is extra helpful if you had to make a big purchase this year, like a new computer, for work.
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Travel Expenses
Sometimes, even as a remote worker, you have to travel for the job. This may be a trip to headquarters for a meeting or traveling to meet with a client in their location. When it comes to travel expenses you can pretty much write off anything.
Planes. Hotels. Rental cars. Mileage and gas. If you had to take a train, taxi, or ferry anywhere you can count that too. The only thing to be mindful of here is that this deduction is strictly for necessary work travel. In other words; no, you cannot write off that vacation you went on last winter and call it a “work trip” just because you worked while you were there. You didn’t have to do that and it won’t count as a necessary trip.
Food and Beverage Costs
While you are traveling though, you can claim 50% of your meals and beverages as a deduction. Again, this only applies to necessary work trips. You are three margaritas at the casino don’t count just because you made a work call that day.
This mostly applies to business dinners with clients, meals you eat while traveling (like at the airport) or any other ingested items while you are working. Even though it’s not a full 100% deduction, it still adds up.
Final Thoughts…
Doing your taxes is no one's favorite task but it’s something that has to be done. Lucky for remote workers, we get to claim some pretty cool deductions that don’t exist for everyone. Use them to your advantage and owe less at tax time. Good luck and may a refund be headed your way!
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Meet The Writer!
Allow me to introduce myself! My name’s Katy Duncan and I work as a freelance copywriter. I specialize in topics regarding health and wellness, fitness, and beauty, on my website, www.eudaimoniaeutopia.com. I offer an array of services including blog posts, blog management, social media management, product descriptions, press releases and editing expertise and I can be contacted through my website or on LinkedIn. When I’m not creating engaging, captivating content for my website or clients or contributing to communities of writers, I’m working on producing a fiction novel from the comforts of my quiet nook in the Pacific Northwest, where I reside with my feline friend, Merlin Magoo and many prospering house plants.
