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    Diddlydudette's Avatar
    Diddlydudette Posts: 4, Reputation: 1
    New Member
     
    #1

    Feb 8, 2009, 05:49 PM
    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's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
     
    #2

    Feb 8, 2009, 05:51 PM

    Does your employer treat you as a contractor (1099) or an employee (W2). That would determine what you can deduct.
    Diddlydudette's Avatar
    Diddlydudette Posts: 4, Reputation: 1
    New Member
     
    #3

    Feb 8, 2009, 06:36 PM

    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's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
     
    #4

    Feb 8, 2009, 07:26 PM

    Then you can't deduct very much if anything.
    Diddlydudette's Avatar
    Diddlydudette Posts: 4, Reputation: 1
    New Member
     
    #5

    Feb 8, 2009, 07:33 PM

    Why is that? Just curious.

    Thanks!
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
     
    #6

    Feb 8, 2009, 08:40 PM

    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's Avatar
    Diddlydudette Posts: 4, Reputation: 1
    New Member
     
    #7

    Feb 9, 2009, 06:05 AM

    Thanks for your help.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #8

    Feb 23, 2009, 02:20 PM
    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.

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