As a 1099 contractor, working from home has a major perk - can claim a portion of all home-related expenses as a write off on your taxes! As long as you work from a dedicated workstation, you can claim home-related expenses as (partial) tax write offs at tax time.
With the cost of rent these days, this one is HUGE! As long as you have a qualified home office, you can write off a portion of your rent! And if you live in an area where rent is high, this write off will be invaluable to you.
You can write off the cost of insurance that covers the business part of your home. An example of this would be property insurance or renters insurance.
Things like electricity, gas, water, and trash removal are usually personal expenses and cannot be written off. But with your home office, you can now write off a portion of these costs!
🛠️ Repairs and maintenance
Some common repairs are painting, patching walls and floors, roof repairs, wallpapering, gutter repairs, fixing leaks, broken windows. Keep in mind, if these repairs are done exclusively in your home office, you can write off the entire amount! If they are done to the full home, like a roof repair, then you’ll get a partial write off.
🏦 Mortgage interest
If you own your home and pay mortgage interest, this can be a great write off. Include the total amount spent on your home mortgage interest for the year and your software will calculate your portion of the write off! This info will be found on your 1098 form from your bank.
💸 Property taxes
Like the mortgage interest write off, a portion of this can also be included! This amount will typically also be found on your 1098 form. If it is not, just be sure to keep copies of your property tax bills.
🛡️ Security System
If you have a security system that protects your home like ADP or cameras for monitoring like Ring or Nest, be sure to include those as well.
This one is a lot less common these days, but if you have a landline, a portion of that can be written off. Perhaps you also have a second dedicated business line, you may write off that entire amount.
This is a must. It would be hard to do any kind of modern work from home without wifi. Don’t forget to claim it on your taxes!
Do you have a cleaning lady that cleans your home? Even if she cleans the entire home (including your workspace), it counts! A portion of this expense can be written off and should not be missed.
As a homeowner, this will be another hefty write off for you. On top of your mortgage interest expense, you can also write off a portion of the value of your home. All you will have to know is the amount you bought your place for and when you purchased it -- your software will take care of the rest.