[Diddlydudette]

I'm in one state but work for another state. I work at home.

What deductions can I take... i.e. can I deduct part of electric bills, etc.

Thanks


I work for a company in another state. Just wanted to clear that up. From my question it sounded like I work for that state.

Thanks.

[ScottGem]

Does your employer treat you as a contractor (1099) or an employee (W2). That would determine what you can deduct.

[Diddlydudette]

I received a W2 so I'm employed by this company. I do layout work for proposals and worked at home. They provided the computer and gave me a corp credit card to purchase supplies.

I started this job last May so I didn't work for them all of 2008... just 7 or 8 months of last year.

Thanks for the quick response.

[ScottGem]

Then you can't deduct very much if anything.

[Diddlydudette]

Why is that? Just curious.

Thanks!

[ScottGem]

Because the IRS says so. If you were a contractor, you could deduct expenses against income. But being an employee you have no self employment income to deduct expenses from.

[Diddlydudette]

Thanks for your help.

[AtlantaTaxExpert]

Actually, Scott did not get it quite right.

You CAN claim a home office and various expenses under Form 2106 and Schedule as an employee business expense.

However, this IS considered to be an audit flag, and you must have some significant expenses to be able to deduct these costs, plus the rules for maintaining a home office are stringently enforced by the IRS.

If you own your home on which you are paying a mortgage (thus enabling you to itemize), then it might be worth your while to check this deduction out.