"For years, you trusted your dad's tax wisdom. He told you-firmly-that you couldn't deduct your home office. Now your accountant says you can. So who's right? Welcome to one of the most misunderstood deductions in the tax code. Let's unpack how this rule actually works, why your dad probably wasn't wrong, and why your accountant may finally be right now."
"Your dad's advice likely came from a time when claiming a home office really was risky for most people. For decades, the IRS treated this deduction with skepticism, especially for employees. Back then, many tax professionals advised clients to avoid it unless they were absolutely sure. The Big Rule Everyone Misses: Who You Work For Matters Here's the key distinction: employees and self-employed workers are treated very differently. If you're a W-2 employee, the home office deduction has been largely off-limits for years."
Home office deduction eligibility depends largely on employment status. Self-employed individuals, freelancers, consultants, side-hustle operators, and business owners can generally claim a home office deduction when they use space regularly and exclusively for business. W-2 employees lost the ability to deduct unreimbursed employee expenses, including home office costs, after the Tax Cuts and Jobs Act took effect in 2018 through at least 2025. Historical IRS skepticism and audit concerns led many advisors to warn against claiming the deduction for employees. Changes in the tax code mean older advice may no longer apply to taxpayers with self-employment income.
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