With that in mind, the company assembled the following primer of “need-to-know” deductions and tax credits.
With that in mind, the company assembled the following primer of “need-to-know” deductions and tax credits. (A text-only version of this is available at "Tax breaks to look out for.")
Home Office Deduction
Here’s how it works: Eligible taxpayers can deduct $5 for every square foot of workspace used – up to a maximum of 300 square feet. So, if the taxpayer uses a den or spare bedroom at home as their home office and it measures 18 X 15 feet for a total of 270 square feet – multiply that by $5 for a total home office tax deduction of $1,350.
The simplified safe-harbor option saves time compared to the standard home office tax deduction calculation of figuring related expenses and how they are apportioned over the course of the year to a home office. One taxpayer-friendly benefit is that one may choose which calculation, either the safe-method or the standard method, to use each year to provide the largest tax deduction.