subject: Work At Home Moms Qualify For Home Office Deductions [print this page] Most Americans would love to qualify for a home office deduction. If you're a work-at-home mom, you need to clearly understand the laws to figure out if you can qualify or not. You should also be sure you set up your home office in a way to increase your chances of getting a home office deduction.
A home office deduction is something that people working out of their home can use to lower their taxes. However, in order for one to qualify, particular specifications must be met. Listed here are three standards to identify your qualifications for a home office deduction.
The first IRS criteria for a home office deduction has to do with your utilization of the space. You must have an area in your home that is only used to operate your home based business. If your office is part of a bigger room, it can be difficult to qualify. This criteria refers to exclusive and regular use, which means you use that area only for business and you do so frequently. You cannot let your family use your computer or desk if you want to qualify for the home office deduction. People who operate a daycare can get an exception to this criteria.
The next criteria involves why you call the home office your place of business. To be eligible for home office deduction means that you need to work out of your home. If you do some work at home for your full time job, you can have trouble proving your home office is your primary place of business especially if you have another office at work.
The final consideration pertains to managing various home based business from a home office. You must be able to prove all the businesses qualify for the home office deduction or you cannot take it at all.
The items included in a home office deduction include a percentage of your utilities, property taxes, as well as other household expenses based on the size of your home office compared to the home's square footage. Phone lines, Internet, and office supplies also qualify.
Anyone who is a full time WAHM should make sure her home office is going to qualify for a home office deduction. That may mean moving the office to a different room or finding some other way to separate your home office from the rest of the house. You also need to have receipts for any purchase you make for your home office so you can deduct them at the end of the year.
