This year has been an interesting rollercoaster for the majority of Stone Mountain, Atlanta, and other Georgia residents. Unfortunately, even if you did get to keep your job and work remotely, you likely had to spend your own pocket money to get your home office set up. Georgia businesses generally haven’t reimbursed employees for this, sometimes steep, cost; so, how can you leverage your taxes to make up for the additional expenditures this year?
Business Owners and Entrepreneurs
If you’re one of Stone Mountain’s amazing small businesses, first of all: thank-you. NTRC Tax has seen the amazing effort you’ve put into keeping your products and services available to this and surrounding areas like Atlanta. This pandemic has truly tested us all in different ways, work and finances being at the forefront. As we approach the time for filing 2020 taxes, it’s important to know what changes you can make to your deductions and reductions this year.
Just like always, business owners and self-employed entrepreneurs are able to deduct reasonable expenses from their taxable income at the end of the year (via the home office deduction). It’s generally best to have all of your receipts available for the expenses you claim in the event of an audit; definitely don’t claim any large expenses without proof of purchase available. In addition, you can only claim business expenses for a home office which has its own room. If you’re working at your kitchen table, the home office deduction won’t apply.
Employees of Georgia Companies
For all of the employees who have been “temporarily” working remotely, you’ll find that there is likely no way for you to deduct expenses for setting up your workspace. Some states are making changes to expense deductions for work-from-home employees, but Georgia isn’t one of them. You can, however, ask your employer’s Human Resource department if there’s any way they can reimburse you for supplies like pens, paper, printer ink, and maybe even your office chair. These are all supplies that the company would have needed to provide you with in the workplace anyway!
Before you start preparing your taxes, connect with your employer and make a list of deductible expenses. The more effort you put into collecting receipts and organizing your purchases, the easier filing your 2020 taxes will be. If you’re curious about how to tackle your taxes this year, feel free to reach out to one of our tax specialists here at NTRC Tax; we’ll help you optimize your reductions and deductions to get the biggest possible refund!