The benefits of telecommuting are many; from working in your pajamas to being able to run to your own fridge for a snack to not having to brave the morning and evening commutes during rush hour. In addition to these types of benefits, those who work from a home office are also eligible for a number of tax benefits. The Lending Tree Blog has outlined some of the benefits you could enjoy. Take a look:
Determine How Much Space Your Home Office Takes Up: firstly, determine the square footage of your home or apartment (you can usually find this in your closing papers or find out from your landlord). Then, measure your home office. Measure the whole room if the entire room is dedicated to work. If not, measure the space around your desk and filing space. Next, use the information to determine what percentage of your home is being taken up by your home office. You can then figure out what percentage of rent, mortgage, heat, electricity, etc. you spend on the office.
If your home office is taking up 40 square feet, and your home has 2,000 square feet, the calculation would look like this: 40 / 2,000 = 0.02. Now you can use the 0.02 to determine your deduction. Multiply 0.02 by the amount you pay each month for your mortgage or rent. If you pay $1,000 a month on your mortgage, the result is 0.02 x 12,000 (12 months) = $240. Then, you can multiply the 0.015 by your heat and electricity. If you spend $200 a month on utilities, that's 0.02 x 2,400 = $48. Your total would be $288.
Make a List of Office Equipment: be sure to determine equipment you bought that is essential to your home office. You can deduct the cost of printers, computers, desks, chairs, supplies and more.
Determine Internet Usage: figure out how much of your home's internet use is for your home office. Then, multiply your yearly internet cost by the percentage and come up with how much your home office is costing you in terms of internet. Here's how Miranda from The Lending Tree Blog faired:
85% of my home's Internet use is for my home business, so I multiply $479.88 (12-month cost) by 0.85 to get $407.90. Not bad - especially when added to my home office deduction and office supplies costs.