Home Office For Employees
This TaxBuzz Guide contains details about the criteria a home office must meet in order for employees to receive tax benefits.
In years before 2018 and after 2025, employees are allowed home office deductions using the same criteria as cited above except that the home office use must also be for the convenience of the taxpayer’s employer.
Convenience of the Employer
Means it is a business necessity—the use of the home must be a condition of employment. The employee needs a place to work, but the employer doesn’t provide it (or the office provided by the employer is inadequate or unsafe). Usage by the employee for personal convenience is not enough.
Example – Employee’s Home Office – Melo Dee, a musician who worked as an employee, used her home for practice because her employer offered no facilities for practice. Melo’s use of her home meets the convenience of the employer test, and she will be able to deduct the expenses of her office (assuming she meets all the other tests). However, since an employee must deduct employee business expenses as a tier 2 miscellaneous deduction, Melo will be unable to deduct on her federal return the home office expenses in 2018 through 2025 when tier 2 miscellaneous deductions are suspended. She may be able to claim the home office deduction on her state return if her state has not conformed to the TCJA suspension of Tier 2 expenses.
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