Textbook Tax

You may claim the home office deduction on your tax return if you used part of your home for business. U.S. tax law allows you to deduct expenses related to the business use of your home on your tax return. The tax deduction applies to both homeowners and renters as well as all types of homes. You determine the amount of expense related to business use based on a standard rate provided by the IRS or a calculated rate established by the percentage of your home utilized specifically for business. The two requirements to claim the home office tax deduction include: (1) regular and exclusive use and (2) principal place of your business. Because the COVID-19 pandemic required millions of people to work from home during 2020, many people are wondering if they can claim the home office tax deduction on their 2020 tax return. Below, I will explain in detail the home office deduction requirements to help you determine if you can deduct home office expenses on your tax return. Fair warning,...

The gig economy influences great growth and popularity in independent contractor opportunities. Many people work both full time and part time as independent contractors. Some popular independent contracting opportunities include ride-share driving, freelance work, and much more! If you work as an independent contractor (or simply self-employed), it is important to understand the tax implications and requirements faced by independent contractors because when it comes to taxes, the independent contractor has full responsibility for withholding and payment! Related Posts: Do you qualify for the QBI Tax Deduction? Why & Apply To begin, I like to start my posts off by introducing the topic and discussing those who may benefit from the information provided. So, why discuss taxes specific to independent contractors? Well, as an independent contractor or self-employed person, you are fully responsible for withholding taxes and making the estimated tax payments. Therefo...