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Can I deduct Microsoft Office purchase as a work expense if I'm not self-employed?

Title: Can I deduct Microsoft Office purchase as a work expense if I'm not self-employed? 1 I recently started having to work from home more frequently, but my company only provides us with computers and Microsoft Office at the actual workplace. They don't give us any software for our personal computers which is becoming a problem since I need Office for my job duties. My current Office subscription just expired, and I'm looking at having to renew it on my own dime. I vaguely remember hearing somewhere that you can only deduct software like Microsoft Office as a tax write-off if you're self-employed or have your own business. But since I need this specifically for my W-2 job, is there any way I could deduct this expense when I file my taxes? I'm definitely not self-employed - just a regular employee who sometimes works remotely. Any advice on whether this would be a legitimate work expense deduction would be super helpful. Thanks in advance!

8 Microsoft has a free online version of Office (Word, Excel, PowerPoint) that you can use through a web browser at office.com. It's not as full-featured as the desktop version but might be enough for basic work tasks without having to pay for a subscription.

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25 The online version is super limited though. I tried using it for my job and couldn't do half the things I needed to in Excel. No advanced formulas or macros. Ended up having to buy the full version anyway.

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Another alternative worth considering is LibreOffice, which is completely free and open-source. It's compatible with Microsoft Office file formats and includes Writer (Word equivalent), Calc (Excel equivalent), and Impress (PowerPoint equivalent). While it may have a slightly different interface, it handles most business tasks well and could be a good temporary solution while you work on getting your employer to provide or reimburse the Microsoft Office subscription. I've used it for basic document editing and spreadsheet work and found it quite capable for most standard office tasks.

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New Business Owners Never Filed 8822-B Form - IRS Still Contacting Me

We sold our LLC / S-Corp last October through a Share Purchase Agreement where the buyers purchased the entity completely. As the previous owners, we properly filed our 1120-S for the exact period up to the day we owned the business. The ownership change was properly recorded with the state Secretary of Economic Commerce, but I'm now getting letters from the IRS about balances due for periods AFTER we sold the business, plus other tax-related communications. After some digging, I discovered the new owners never filed Form 8822-B to update the responsible party information with the IRS. I can't file the 8822-B myself because I don't have the new owners' SSNs or other required information. I've tried contacting them but getting minimal response. I'm seriously worried the IRS will come after me for taxes, balances, or other issues that occurred between the sale date and now. This is causing me so much anxiety - I just want to resolve this properly and move on with my life. Has anyone dealt with this situation before? What can I do to protect myself?

Just to add another perspective, I had to deal with this same issue when we sold our family restaurant. The IRS kept sending employment tax notices to us for quarters after we sold. What worked was sending a letter to the IRS that included: 1) A copy of the signed sales agreement with the effective date highlighted, 2) A copy of our final 1120-S showing it was our final return, 3) Documentation from the state showing the ownership change, and 4) A cover letter explaining the situation. I sent this package certified mail to the address on the notices I was receiving. It took about 6 weeks, but eventually they updated their records and the notices stopped. If new owners won't file the 8822-B, you have to take matters into your own hands.

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Did you have to include any specific IRS forms with your letter or just the documents you mentioned? And did you call the IRS first or just send in the letter?

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I'm going through almost the exact same situation right now - sold my consulting LLC in December and the new owners haven't filed the 8822-B either. The IRS notices have been giving me panic attacks because I keep thinking I'm somehow still responsible for their tax obligations. Reading through everyone's responses here has been incredibly helpful. I think I'm going to try the approach of sending a certified letter package to the IRS with all my sale documentation first, since that seems to have worked for several people and doesn't require getting the new owners to cooperate. @Giovanni Martello - have you made any progress on this since posting? I'm curious if any of these suggestions have worked for you. Also wondering if you've had any luck getting the new owners to respond at all about filing the 8822-B.

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Can I deduct my home internet bill if I work 100% remotely?

Title: Can I deduct my home internet bill if I work 100% remotely? 1 I've been working completely from home since early 2020, right before all the COVID shutdowns happened. I literally never go to the office anymore - it's been almost 5 years of full remote work. I'm working from my actual house like 99% of the time (occasionally I'll work from a coffee shop or something if I need a change of scenery). My partner asked me something interesting the other day - since the internet is basically essential for my job now, can we deduct our home internet bill on our taxes? We're paying like $85/month for high-speed, which adds up over the year, and it seems like it should count as a work expense since I literally can't do my job without it. Does anyone know if home internet counts as a tax deduction for remote workers? And would it matter that I've been 100% remote for years now?

5 Does anyone use TurboTax for figuring this stuff out? I'm self-employed and use my internet for work but never sure how to calculate the percentage.

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15 I use TurboTax Self-Employed and it walks you through the calculation. They recommend tracking hours of business use vs. total hours, or splitting it based on devices (like if 2 of 5 devices are business-only). Most people I know just use a reasonable percentage like 50% if they work full-time from home but also use internet for personal stuff.

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5 Thanks! The hours method sounds complicated but the device method might work for me. I have a dedicated work computer so I could probably justify around 30-40% business use.

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This is such a common question for remote workers! I went through the same confusion when I first started working from home full-time. One thing I'd add to what others have mentioned - even though you can't deduct internet as a W-2 employee at the federal level, some states still allow certain unreimbursed employee expenses. It's worth checking your specific state's tax rules since they can differ significantly from federal guidelines. Also, definitely document your work-from-home setup and expenses even if you can't deduct them right now. The Tax Cuts and Jobs Act provisions expire in 2025, so there's a chance the rules could change for future tax years. Having good records ready could be helpful if the deduction becomes available again. And like others said, definitely explore reimbursement options with your employer first - that's tax-free money in your pocket versus a deduction that reduces your taxable income.

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Great point about state rules being different! I'm in New York and wasn't sure if we had any different provisions. Do you know of a good resource for checking state-specific deductions, or is it best to just look at each state's tax website directly? Also really smart advice about keeping records even if we can't use them now. I've been pretty loose about tracking my home office expenses since I figured they weren't deductible anyway. Sounds like I should start being more organized about it just in case things change after 2025.

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For New York specifically, you'll want to check Publication 36 on the NY.gov tax site - they have a section on itemized deductions that might differ from federal rules. But honestly, each state's tax website can be pretty dense to navigate. I've found that tax software like TurboTax or FreeTaxUSA usually does a good job of catching state-specific deductions when you're filing, so that might be easier than trying to research every state rule manually. They'll ask the right questions and apply your state's specific rules automatically. And yes, definitely start tracking those expenses now! I keep a simple spreadsheet with dates, amounts, and what the expense was for (internet, office supplies, etc.). Even if it feels pointless right now, you'll be so glad to have that documentation if the rules change. Plus some expenses might become relevant if you ever do any freelance or consulting work on the side.

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Got two paychecks with $0 net pay - everything going to taxes?

So I've been working at this restaurant for about 8 months now, and something weird just happened. My last two paychecks as a server showed $0 net pay! I've always gotten normal direct deposits from this place before, but suddenly it seems like 100% of my check is getting eaten up by taxes? I checked my paystubs and all the numbers look different than before. I'm making roughly the same in tips each week as I always have, but for some reason nothing's left after all the deductions. The gross amount looks normal but then there's a bunch of withholding that's taking everything. Does anyone know why this would suddenly start happening? Is it a payroll system error or did someone change my tax withholding without telling me? I need to fix this ASAP because I'm counting on that money for rent next month. Any help figuring this out would be amazing!

I'm surprised nobody mentioned checking for wage garnishments. If you have unpaid debts, child support, student loans, or tax liens, your wages can be garnished, sometimes taking most or all of your paycheck. The garnishment would show up on your paystub though. Worth checking all line items carefully.

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This happened to a coworker at the bar where I work. She thought it was a tax issue but turned out she had defaulted student loans she'd forgotten about. Her entire hourly wage was being garnished and it showed up as a line item called "ED GARNISH" on her paystub. Easy to miss if you don't look carefully at each deduction.

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Check your paystub line by line and compare it to previous ones from before this started happening. Look specifically for any new deductions that weren't there before, and verify that your filing status and number of allowances on your W-4 are still correct. Since you mentioned this started suddenly after 8 months of normal paychecks, something definitely changed in the system. It could be the new POS system others mentioned, a payroll software update, or even an error in how your tax withholding is being calculated. I'd recommend taking your recent paystubs plus a few older ones to your manager or whoever handles payroll and ask them to walk through exactly what changed. Don't let them brush you off with "that's just how taxes work" - you deserve a clear explanation since this is a sudden change from your normal pay pattern. Also consider reaching out to your state's Department of Labor if your employer can't give you a satisfactory explanation. They can help determine if wages are being withheld properly according to state and federal law.

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Calculating Rental Property Depreciation for 2024 Tax Returns - How to Handle Single Room Rentals?

So I bought a small house in Colorado last year but I live in Texas. From what I'm hearing, I need to figure out depreciation for this rental property on my 2024 tax returns? The thing is, I'm not renting out the whole place - just one bedroom to a college student while I keep the rest available when family visits. I'm super confused about how to calculate depreciation when only part of the property is generating income. Do I depreciate the entire house value or just a percentage based on the rented room's square footage? And do I need to file taxes in Colorado too since the property is there but I live in Texas? My tax software is giving me conflicting information, and I really don't want to mess this up and trigger an audit. Has anyone dealt with partial rental property depreciation before? Any advice on how to properly document this on my return would be amazing!

One thing nobody's mentioned is that you should check if you can use the simplified method for home business deductions instead of calculating actual expenses. If the rented room is under 300 sq ft, you might be able to use the $5 per square foot deduction (up to 300 sq ft) which is MUCH easier than tracking all those individual expenses and doing all those calculations. Not sure if it applies perfectly to your situation but worth looking into!

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That's for home OFFICE deductions, not rental property. The simplified method doesn't apply to rental income reported on Schedule E. They're totally different tax situations.

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I've been through a similar situation with my duplex in Florida while living in Georgia. One important thing to add that I don't see mentioned yet - make sure you're tracking your "days of personal use" very carefully. The IRS has specific rules about what constitutes personal use vs rental use. If you're keeping part of the house available for family visits, those days when family actually stays there count as personal use days, which can affect your ability to deduct rental losses if you have any. Also, any days you spend there yourself for maintenance or repairs don't count as personal use, but days spent there for vacation or personal reasons do. For the Colorado filing requirement, you'll definitely need to file a nonresident return there since that's where the rental income is generated. Most states have this requirement regardless of where you live. The good news is you can usually claim a credit on your Texas return (though Texas has no state income tax, this would apply if you lived in a state with income tax). Documentation is key - keep a calendar marking rental days, personal use days, and vacant days. This will be crucial for your depreciation calculations and expense allocations.

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