Unreimbursed business expenses deduction2/13/2024 ◆ Scores of employees who have been furloughed or working from home are being called back to physical workplaces. Sam Dean explains how employers in Los Angeles are responding to working parents’ needs. Unified School District and others across California barred from opening for in-person classes. ◆ Working parents are facing a child-care crisis, with the L.A. ![]() Your support helps us deliver the news that matters most. To learn more, visit the California Society of Certified Public Accountants’ COVID-19 resource page and the IRS’ coronavirus FAQ page.Ĭonsider subscribing to the Los Angeles Times Self-employed people certainly should work with a professional because typically they miss a lot of things, or conversely, they write off a bunch of expenses they aren’t actually allowed to write off. If you get the hang of it after working with a tax professional, you can use the prior year as an example. You should work with a qualified tax preparer, especially the first time. Would you recommend working with a CPA on this process? ![]() This sounds like it could get complicated. You should be sure to have utility bills as well. If it’s rent, you certainly need the rent checks. You need the documentation to support the deduction. What kind of documentation would you need? Should you keep utility bills around, for example?Ībsolutely. In that case, you can write off 10% of the above-mentioned expenses. Let’s say 10% of the space you’re renting is used for home work - that’s tax deductible on the state side as a miscellaneous itemized deduction, if you exceed the standard deduction limit. But if you have a two-bedroom home and one bedroom is dedicated to business, you can write off a portion of your rent, utilities, homeowner’s insurance or renter’s insurance, and any repair and maintenance, on your California taxes. In order to deduct home-office expenses, you really need a dedicated space - not your kitchen table. How does this work with home-office space? Can I write off the desk and chair I bought after beginning to work from home? He has a huge amount of unreimbursed expenses that he spends on his clients, so he hits that criteria on the California side. For instance, I have a client that’s a stockbroker. If you’re renting, it’s very difficult, unless you have a lot of medical expenses, charitable deductions or other unreimbursed business expenses. ![]() Would it be difficult for the average person to hit that number in California? Other itemized deductions you can claim include medical expenses (though criteria must be met), real estate taxes, DMV fees, mortgage interest, charitable deductions, casualty losses from a federally declared disaster and any other miscellaneous itemized deductions. Otherwise, you would just claim the standard deduction. And if you’re filing jointly with your married partner or registered domestic partner, or if you’re a qualifying widower, you should have itemized deductions totaling more than $9,074. For example, if your adjusted gross income is $100,000 and you spend $2,500 on home-office expenses, the first $2,000 - that is, equivalent to 2% - wouldn’t count toward itemized deductions, but the remaining $500 could.īut it’s important to note that if you’re single or filing separately from your married partner or registered domestic partner, you need to have more than $4,537 in itemized deductions for it to make sense to use the itemized deduction option. If you spend more than 2% of your adjusted gross income on certain unreimbursed miscellaneous itemized expenses, including home-office expenses, you can itemize anything that goes over that 2%.
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