TEMPLE, Texas — Before the pandemic, only 20% of adults worked from home. That number shot up to 71% by December 2020. But what did working from home do to your taxes that are due this spring? Certified Financial Planner Neil Vannoy helped 6 News cover this topic in an all-new episode of Money Talks.
"Working from home can have a huge impact on your taxes, so make sure you do research on the potential benefits and avoid pitfalls based on your specific situation," Vannoy said.
According to Marketwatch, a digital financial website, if you are self-employed you can still deduct home office expenses under your federal income. But that is not the case if your employer sent you home to work during the pandemic. Also, it not only matters what state you are working in, but which state you are working for.
"Employees that have worked remotely from another state should be aware that they could owe income tax in that state. Texas doesn't have a state income tax so remote workers from other states that have spent time here won't have that problem. But Texans that have spent time in a state with an income tax might be in for a surprise" Vannoy explained.
Some of the benefits of working from home can include saving on gas, it can be easier to make meals and you can make your surrounding environment just how you like it.
But, can working from home be a tax write-off?
6 News' Certified Financial Employer said, "You might be able to take a tax deduction for a home office, but the rules are strict and only apply to self-employed individuals and independent contractors."
The government might not give you a tax break or write-off if you work for a company. However, Vannoy said you need to track your spending because your employer might owe you some cash.
"That being said, employees can request reimbursement from their employers for home-office expenses they incur from working at home, and any reimbursements received won't not taxable if documented properly," Vannoy said.
Well, according to U-S-A Today, nearly 30% of working professionals say that they would quit if they had to return to the office after the pandemic.
Also on KCENTV.com: