A 1099 from 15 years ago taught me about home office deductions

Back in 2008, my first year freelancing in Portland, I got a 1099 from a client and panicked because I had no idea about deductions. A friend told me to claim my home office space since I used it exclusively for work. I measured my 120 square foot room and saved over $600 that year just by deducting a portion of rent and utilities. Has anyone else had an old tax pro give them a tip that changed how they file?

3 comments

3 Comments

hannahj4917d ago

Did you have to prove exclusive use to the IRS or just claim it?

kimr9117d ago

My basement office was the same situation @hannahj49. I claimed the exclusive use and never had to show any proof to the IRS, just kept good records in case they ever asked. That deduction saved me around $1,200 last year and I felt totally fine filling out the form.

hunt.hayden17d ago

Honestly I feel like the whole exclusive use thing is kind of a grey area for most of us who work from home. Like is my dining table really a dedicated office space or am I just lying to myself? I claimed my spare room last year and I keep telling myself if the IRS ever audits me I'll just say I use it for important spreadsheets and crying about deadlines. Makes me feel better about the $900 I saved even if it's probably treading a fine line. Ngl I'd rather risk it than pay more taxes.