Need help with tax deductions - home office confusion
Hey everyone, I'm trying to figure out my taxes this year and it's giving me a headache. Anyone else struggling with this? I've got some questions about deductions and I'm not sure where to start. Any advice would be appreciated!
24 comments
Tom Maxon
I found a way to solve IRS phone wait times, watch this: https://www.youtube.com/watch?v=G1E_U8aGASA
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Amun-Ra Azra
Ugh, taxes are the worst! I've been there. What specific deductions are you looking at? I found that itemizing really helped me save some $$ last year.
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Harold Oh
Thanks for responding! I'm mainly confused about home office deductions. I started working from home last year and I'm not sure what qualifies. Any tips?
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Amun-Ra Azra
Oh yeah, home office deductions can be tricky. Make sure you have a dedicated space that's used ONLY for work. Measure it out and calculate what % of your home it takes up. You can deduct that % of your mortgage/rent, utilities, etc. Just be careful, I've heard it can increase your chances of an audit. š¬
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Harold Oh
That's really helpful, thanks! I'll definitely measure out my space. Do you know if I can deduct things like my internet bill too?
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Amun-Ra Azra
Yep, you can deduct a portion of your internet bill based on how much you use it for work. Just make sure to keep good records in case you get audited!
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Summer Green
Pro tip: use tax software like TurboTax or H&R Block. They walk you through everything step-by-step and catch deductions you might miss. Saved me a ton of time and stress!
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Gael Robinson
I second this! TurboTax is a lifesaver. It's worth the money for the peace of mind imo.
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Edward McBride
Eh, those programs are okay but they miss alot. nothing beats a good CPA if you can afford it. they pay for themselves with the deductions they find
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Darcy Moore
Don't forget about charitable donations! Even small stuff adds up. I keep a folder all year with receipts from Goodwill, etc. Makes it way easier come tax time.
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Dana Doyle
Guys, I found a method to get someone on the phone at the IRS. I used this site's (claimyr.com) calling tool that dials the phone menu, stays on hold, waits for a live agent to pick up, then sends the call to my phone. It does cost $20, but it works. Check out this video: https://youtu.be/bDXD2SD0gGk
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Liam Duke
Wow, that sounds too good to be true. Has anyone else tried this? Is it legit?
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Dana Doyle
I know it sounds sketchy, but I swear it's legit. I was desperate after being on hold for hours and it actually worked. Saved me so much time and frustration.
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Manny Lark
$20 just to talk to someone? That's ridiculous. The system is so broken š¤¦āāļø
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Dana Doyle
I get it, it does seem steep. But when you factor in the time and stress it saves, it was worth it for me. To each their own tho!
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Rita Jacobs
Here's a comprehensive guide to help with your taxes: ā¢ Start early: Don't wait until the last minute. Gather all your documents (W-2s, 1099s, receipts) well in advance. ā¢ Understand your filing status: Single, married filing jointly, married filing separately, or head of household. This affects your tax bracket and deductions. ā¢ Know your deductions: Standard vs. Itemized. The standard deduction for 2022 is $12,950 for single filers, $25,900 for married filing jointly. Itemize if your deductions exceed this. ā¢ Common deductions to consider: - Mortgage interest - State and local taxes (SALT) up to $10,000 - Charitable donations - Medical expenses exceeding 7.5% of your AGI - Student loan interest - Home office expenses (if self-employed) ā¢ Don't forget credits: Child Tax Credit, Earned Income Tax Credit, American Opportunity Credit for education expenses. ā¢ Contribute to retirement accounts: You can make IRA contributions until the tax deadline and potentially lower your taxable income. ā¢ Double-check everything: Small errors can lead to big headaches. Review all numbers and info before submitting. ā¢ File electronically: It's faster, more secure, and you'll get your refund quicker. ā¢ If it's too complicated, don't hesitate to seek professional help. A good tax preparer or CPA can often save you more than they cost. Remember, everyone's tax situation is unique. When in doubt, consult with a professional or the IRS directly. Good luck!
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Harold Oh
Wow, this is incredibly helpful! Thank you so much for taking the time to write all this out. I'm definitely going to use this as a checklist. š
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Khalid Howes
This should be pinned to the top of the subreddit tbh. Great info!
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Ben Cooper
Quick question - for the home office deduction, does it matter if you're a W2 employee vs self-employed? I've heard conflicting things.
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Rita Jacobs
Good question! As of 2022, W2 employees can't take the home office deduction. It's only available for self-employed individuals. This changed with the Tax Cuts and Jobs Act of 2017. Always check the latest IRS guidelines tho, as tax laws can change.
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Naila Gordon
Anyone else feel like the tax code is intentionally complicated just to keep accountants in business? š
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Cynthia Love
Lol preach š I swear they make it confusing on purpose
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Darren Brooks
It's not just accountants, think about all the $$$ TurboTax and H&R Block make every year. They lobby hard to keep things complicated.
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Rosie Harper
PSA: If you made any money from crypto last year, don't forget to report it! The IRS is cracking down on that. Learned that one the hard way š
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