Working from Home has Tax Benefits

5 Tax Issues Home-Based Businesses Face

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Last Updated on July 29, 2020 by Work In My Pajamas

One of the benefits of working from home, besides the fact that I can work in my pajamas, is that I can write off a percentage of my house that I use for my business.  I take the total square feet of my office space divided by the whole house to get a percentage, and then my accountant uses that percentage of my house expenses (taxes, insurance, utilities, etc) for my income taxes at the end of the year. The next house that I build, I am making my office even bigger!  And not just for tax purposes, but because I spend more time in here than anywhere else, thus my whole family spends a lot of time in here as they always know where to find me!

Another expense you can write off when you file your income tax online is your cell phone bill.  In fact, I use my cell phone to make all of my long distance calls to avoid paying per minute fees on my land line.   But being the cheapskate that I am, I still recommend doing a cell phone plans comparison to get the best deal as the more money saved, is more money for your own paycheck! Unfortunately I live in hickville, so I couldn’t find me a cheaper rate as the big carriers like T-Mobile and AT&T don’t offer service here.

Click here to see more tax deductions that you can write off when you work from home.

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