Remote Work and Tax Deductions

Posted on February 1, 2023

tax preparation services

There are lots of things that can make doing your taxes complicated. One of those things is remote work. If you work from home, even as an employee, it affects some of the things you have to do when you file your taxes. At ABC Payroll, we offer tax preparation services to help you navigate all the ins and outs of filing your taxes so you claim all the deductions you can cover all your bases.


Tax preparation services help you find all the deductions applicable to you. Here are some of the deductions you may be able to claim if you work remotely.


Home Office Deduction

In some circumstances, remote workers can claim a home office deduction. This deduction allows you to deduct a portion of your rent, mortgage, utilities, insurance, and other expenses related to the portion of your home used exclusively and regularly as your principal place of business. However, to claim this deduction, you must pass two tests: the regular use test and the exclusive use test. To meet those criteria, you must use your home office space only for business purposes and on a regular basis.


State Income Taxes

Many remote workers do not live in the same state as their employer’s offices. If you are working remotely in a state that is different from your employer’s state, you may be required to pay state income taxes to both states. This is known as having “dual state” tax liability. In this case, you may be able to claim a credit for taxes paid to the other state on your home state’s tax return.


Travel Expenses

Just because you work from home, that doesn’t mean you don’t still have to travel for work from time to time. If you are traveling for business while working remotely, you may be able to deduct your travel expenses, such as airfare, lodging, and meals. However, if you are traveling to a location that is your tax home (i.e. your main place of business), you cannot deduct your travel expenses.


tax preparation services

Tax Preparation Services from ABC Payroll

We all want to claim as many deductions on our taxes as possible, but you want to ensure you qualify for those deductions and don’t miss any others. There’s a lot to keep track of, which is why ABC Payroll is here to help with tax preparation services.


Contact us at 978-251-3003 for tax preparation services, payroll systems, are more!