Can W-2 employees still deduct home office expenses on their Form 1040? How?

Wait, I'm confused. So there's absolutely no way for regular employees to deduct ANY home office expenses anymore? What if my employer requires me to work from home but doesn't reimburse anything? That seems really unfair since I'm spending so much on electricity and internet that I wouldn't otherwise need to use during work hours.

You're right that it can feel unfair, especially when your employer requires remote work without reimbursement. The Tax Cuts and Jobs Act suspended the deduction for unreimbursed employee business expenses (including home office) for tax years 2018 through 2025. For your situation, the best approach is to request reimbursement directly from your employer. Some companies have formal policies for this, while others might be willing to negotiate even if they don't advertise it. You could present them with a breakdown of your additional costs due to working from home. Alternatively, these expenses might be something to consider when negotiating salary or raises, as they represent real costs of doing your job.

How exactly does this work? Does it just give general advice or does it actually help with filling out tax forms? I'm a W-2 employee but I also do some freelance work on weekends - would it help me figure out what percentage of my home office I could deduct for the freelance portion?

Sounds like an ad. Is this actually legit? I've tried so many "tax helpers" that just waste my time and then try to upsell me on premium features that don't deliver.

It analyzes your specific situation and provides personalized guidance based on your tax documents and circumstances. Since you have freelance income alongside your W-2 job, it would definitely help calculate what percentage of your home office expenses could be deducted for the self-employment portion of your income. I was skeptical too! I felt the same way about other tax tools I've tried. The difference is this one doesn't try to do everything - it's specifically focused on answering your tax questions with precision rather than being a full tax prep replacement. It saved me from making a mistake that would have cost me over $750 in deductions I was actually entitled to from my side gig.

How does this actually work? I'm confused about how a third party service can get you through to the IRS faster. Don't you still have to wait in the same queue as everyone else?

Yeah right. So you're telling me this magical service somehow jumps the IRS phone queue when millions of people can't get through? Sounds completely made up. The IRS phone system is broken by design - no way around it.

It works by using an automated system that continually redials and navigates the IRS phone tree until it secures a spot in the queue. Once you're in line, they call you and connect you directly to the IRS agent. You skip the busy signals and automated hangups that most people encounter when trying to call. The service doesn't actually "jump" the queue - it just handles the frustrating part of getting into the queue in the first place. Think of it like having someone wait in a physical line for you, then texting when they're about to reach the front. The IRS phone system is absolutely broken, which is exactly why this service exists. I was skeptical too until I tried it and actually got through after weeks of failing on my own.

Thanks for breaking this down so clearly! One more question - if I decide to start a small side business from home, would I immediately qualify for the home office deduction against that income? Or is there some minimum amount I need to earn first?

You would qualify for the home office deduction against your side business income right away - there's no minimum earnings threshold for taking the deduction. However, there are two important considerations to keep in mind. First, the space must be used "regularly and exclusively" for business, meaning you can't deduct your kitchen table if you also eat meals there. Second, while there's no minimum income requirement, if your business shows losses for multiple years, the IRS might classify it as a hobby rather than a business, which would disallow the deductions. Generally, showing a profit in 3 out of 5 years helps establish business intent.

I used the simplified method last year for my freelance work. It's definitely easier but might give you a smaller deduction depending on your situation. With the $5/sq ft method, I got a $1,250 deduction (250 sq ft office). When I calculated the actual expenses method this year, I got almost $1,800 for the same space.