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Do you know if you’re eligible to get tax benefits for home office décor? If you currently work from home, you may be able to deduct certain items associated with your workplace. While many people claim office supplies and equipment, home décor items can also be written off on your tax form. However, it’s important to know what the IRS accepts, as not everything may be used for deductions.
In this article, we’ll share what expenses can be claimed to ensure you’re getting your maximum refund!
Finding the Right Decor
Before you can claim tax deductions, you need to buy the right decor. For those wanting to reduce strain on their body while working, ergonomic furniture is the best option.
If you’re looking for the perfect ergonomic solution for your desk, get the Coolhut Ergonomic Office Chair from Walmart Business. Its lumbar support and high back will keep you comfortable and help you maintain your posture, reducing the strain on your body. The adjustable height lets you keep your feet planted on the floor and your computer at eye level, cutting down on neck strain.
Do You Qualify for Home Office Decor Deductions?
Generally speaking, you can only claim a home office deduction if you use your home as your primary place of business. This could be a room or even a free-standing structure like a studio, garage, or barn. Keep in mind it cannot be a personal room, as it needs to be used exclusively for your business operations. You can also deduct expenses if you have a business at another location but use part of your home for meetings.
The deduction amount is based on how much space you dedicate to your office. For tax purposes, there are two main methods used to calculate this:
- Simplified Method: You will deduct $5 per square foot of your home office up to a maximum of 300 square feet. With this method, you don’t have to itemize each individual expense, although your maximum deduction will be $1,500.
- Regular Method: You will deduct a percentage of your expenses (rent, utilities, supplies, etc.). It’s more manual and requires more calculations, but there’s a chance you’ll get bigger savings compared to the simplified method.
Not sure which method is best for your tax situation? Working with a tax professional can help you decide to ensure you get your maximum refund amount back.
Another thing to note is that these deductions are only available to self-employed individuals. You do not qualify for home office deductions if you work remotely for an employer.
Ways to Maximize Your Tax Benefits for Home Office Decor
As a rule of thumb, you can write off items that directly impact the functionality and design of your home office. Here’s a detailed list of what qualifies as a home office décor expense:
- Furniture: Any furniture you buy to decorate your office can be expensed. This includes your desk, chair, filing cabinet, and bookshelf.
- Lighting: Lighting clearly improves the functionality of your workspace. Therefore, you can write off table lighting and desk lamps. If you are paying for electricity, this can also be claimed on your tax form.
- Window treatments: Curtains and blinds used in your home office may be eligible for deductions. However, these should have some functionality that you can justify (reducing glare, blocking the sun, etc.).
- Organizational décor: Staying organized is key for any office. And since these things enhance the functionality of your office, they can be written off. This includes shelving, cabinets, storage boxes, table organizers, drawer organizers, etc.
- Wall art: Some wall art may be eligible for your home office décor deductions. However, you’ll want to make sure it somehow enhances the quality of your workplace. This generally excludes family photos but can apply to anything else that brightens the mood or promotes motivation.
- Rugs and carpet: Not only are rugs and carpets aesthetically pleasing, but they also help to reduce noise. Plus, it makes your workspace much more comfortable and therefore, functional!
- Plants: Because plants improve the working conditions of your home office, they can be deducted. On top of that, they also have a calming and air-purifying presence, so it’s a win-win situation!
- Cushions and blankets: If you have a couch or chair in your office, you may be able to claim the pillows, cushions, or blankets. This is because they improve the condition of your office so you are able to work more comfortably.
- Clock: Having a clock is important for keeping track of time. For that reason, it serves a practical business purpose and can be expensed.
How to Get Tax Benefits for Home Office Decor
Now that you know which items are eligible for deduction, let’s talk about how to claim these on your tax forms.
- Decide which method to use: When filing your taxes, you’ll need to use either the regular method or the simplified method. The regular method is better for larger home offices or people with substantial expenses. The simplified method is suitable for small offices or people who don’t want to deal with documentation and detailed receipts. It’s also best for people doing their own taxes.
- Document your expenses: If you choose the regular method, the only way you’ll be able to claim your expenses is with a detailed receipt. Make sure you keep a record of any décor items you purchased for your home office. Tools like Quicken can assist with documentation and record-keeping.
- Take photos: It’s also a good idea to take photos of your office. This will help show the IRS that your space and home décor items are used exclusively for business.
- Speak with a tax professional: If you’re still unsure how to claim these deductions, we highly recommend working with a tax professional. They can confirm which items qualify or which method is best for your tax situation.
As you can see, there are lots of ways to get tax benefits for home office décor to lower your tax burden. It’s one of the main ways for small businesses or self-employed individuals to save money during tax season! However, there are things business owners need to keep in mind. But remember, by staying on top of your tax situation early in the year, you’ll be set you up for financial success!
