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Make sure you're also keeping track of what percentage of your home the office takes up! The square footage ratio is super important for calculating the deduction correctly. And don't forget you can only deduct furniture as a direct expense if you're using the actual expense method, not the simplified $5/sqft method.
Thanks for mentioning this! I'm using the regular method since my actual expenses are higher than what I'd get with the simplified option. My office is about 120 sq ft in a 950 sq ft apartment, so I'm tracking that percentage for shared expenses like utilities too. Do I need to take photos of the space to document that it's exclusively used for work?
Yes, taking dated photos of your office space is actually a great idea. Document that it's clearly set up as a workspace with no personal/non-business items visible. Having a floor plan showing measurements is also helpful documentation. With your measurements, you're looking at about 12.6% of your home being used for business, which seems reasonable and less likely to trigger extra scrutiny than higher percentages.
Lol at everyone overthinking this. Just deduct it. As long as you actually paid for it and use it for work, the IRS isn't going to care about the name on a furniture receipt. They barely have staff to process returns let alone investigate every home office desk purchase.
Unpopular opinion maybe but I think we DO have a say in where our tax dollars go - it's called voting! We elect representatives to make these decisions. If you don't like how money is spent, vote for candidates who share your priorities. The problem is most Americans don't bother researching candidates' positions on budget priorities. They vote based on a few hot-button issues or party loyalty without looking at actual budget proposals.
Voting barely matters tho. Both parties spend crazy amounts on military and corporate subsidies no matter who wins. The choices we get are so limited and once they're in office they do whatever lobbyists want anyway.
Voting absolutely matters, but you need to look beyond just the presidential race. Congressional, state and local elections have huge impacts on how your tax dollars are spent. In fact, a much higher percentage of your state/local taxes go to things that directly affect your daily life. You're right that there's bipartisan agreement on some big spending categories, but there are still significant differences in budget priorities between parties and individual candidates. The key is getting involved in primaries and supporting candidates who align with your spending priorities. Democracy isn't a spectator sport - it requires active participation beyond just complaining.
Has anyone tried writing to their congressman about this? I've heard they sometimes respond if enough constituents bring up the same issue.
I actually did this last year! I wrote to my representative about wanting more transparency in tax spending. Got a form letter back with general budget info. Not super helpful but at least they logged my concern.
Has anyone used tax software to figure this out? I tried entering a similar expense in TurboTax for my home business and it wasn't clear where to put it.
Has anyone used a property improvement like tree removal as a direct materials cost if you use the wood in your woodworking business? I had a similar situation and my accountant let me fully expense the tree removal because I milled the wood for inventory. Might be worth considering if the trees are a usable species.
That's brilliant! What documentation did you need to provide to make that work? I'm guessing you'd need to show the wood was actually used in products?
Just a quick tip - most states have an online portal where you can register and view your filing history. Google "[your state] tax portal" or "[your state] department of revenue account" and you should find it. You'll need to create an account and verify your identity, but then you can see if you filed last year without having to call anyone. That's how I confirmed I had accidentally skipped filing state taxes one year (had to pay a small penalty but it wasn't too bad).
Do you know if these state portals also show if you owe money still? I filed state taxes last year but got a letter recently saying I have an outstanding balance, which seems wrong.
Yes, most state tax portals will show any outstanding balances you might have. They typically display your filing history, payment history, and any current amounts due including penalties or interest that might have accrued. If you received a letter saying you have an outstanding balance that you believe is incorrect, definitely log into your state's portal to verify. Sometimes there can be processing errors or payments that weren't properly credited to your account. The portal should show the breakdown of what they think you owe and why, which can help you determine if there's a legitimate issue or a mistake.
I made this exact mistake two years ago and didn't file my state taxes! I filed through what I thought was the "official site" and only did federal. Didn't realize until I got a notice from my state a year later. Had to pay penalties and interest. Check your state's department of revenue website asap to see if you have any unfiled returns or balances due. You might still be able to file a late return and reduce any penalties if you act quickly!
CosmicCommander
Something else to consider with two full-time jobs - it's not just about taxes but benefits too. I did this last year and discovered some weird overlaps: - My second job offered health insurance but I was already covered at my main job - 401k contribution limits apply across ALL your jobs combined (found this out the hard way) - PTO management becomes a nightmare juggling two schedules - You might hit Social Security tax limits and see a bump in later paychecks Just make sure you're looking at the whole picture. The extra money was nice but I was basically working 70+ hours a week and barely had time to spend any of it. Ended up quitting the second job after 5 months.
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Natasha Volkova
β’Did you have any issues with either employer finding out about the other job? I'm thinking about doing this but worried my main job might consider it a conflict of interest or something.
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CosmicCommander
β’I didn't have any direct issues because the jobs were in completely different industries (office admin work during weekdays and retail on evenings/weekends). Neither company had policies against outside employment. However, I did almost get caught once when I had to call out sick from my weekend job and my manager there tried to reach me during a weekday meeting at my main job. I'd definitely recommend checking your employment contracts first. Some companies do have clauses about outside employment, especially if it could be considered a conflict of interest or if they think it might affect your performance.
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Javier Torres
The real hack here is adjusting your tax withholding correctly. Go to the IRS withholding calculator online, enter your info from BOTH jobs, and it'll tell you exactly what to put on your W-4 forms. I worked 2 full-time jobs for about 9 months in 2023 and actually got a $1,200 refund because I set everything up correctly from the start. The key is to select "Multiple Jobs" on your W-4 and possibly have extra $ withheld from each check. Don't listen to people who don't understand how tax brackets work. You'll never lose money by making more money. A higher tax bracket only affects the portion of income above that threshold.
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Emma Davis
β’I tried using that IRS calculator thing and got super confused. It asked for way more information than I had available. Is there a simpler way to figure this out?
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