• Home
  • Mobile Banking
  • Personal
    • Certificates
    • Checking
    • Savings
    • Additional Services
    • Credit, Debit, ATM Cards
    • Loans
    • Switch Kit
  • Business
    • Cash Management
    • Checking & Debit Cards
    • Loans
  • Mortgage
  • Agriculture
    • Real Estate Banking
    • Loans
  • About Us
    • Giving Back
    • Locations & Hours
    • Contact
  • Local Events
  • Home
  • Privacy Policy
  • Contact Us
  • Blog
  • Site Map
Citizens First Bank Logo Log In Click for contact info
Click for Mobile bankingMobile Banking Click for online banking Online Banking Click for contact info Contact Us
Citizens First Bank Logo
  • Personal
    • Certificates
    • Checking
    • Savings
    • Additional Services
    • Credit, Debit, ATM Cards
    • Loans
    • Switch Kit
  • Business
    • Cash Management
    • Checking & Debit Cards
    • Loans
  • Mortgage
  • Agriculture
    • Real Estate Banking
    • Loans
  • About Us
    • Giving Back
    • Locations & Hours
    • Contact
  • Local Events
Citizens First Bank Logo

You are now leaving Citizens First Bank's website and are going to a website that is not operated by the bank. We are not responsible for the content or availability of linked sites.

Citizens First Bank offers links to other third party websites that may be of interest to our website visitors. The links provided in our website are provided solely for your convenience and may assist you in locating other useful information on the internet. When you click on these links you will leave the Citizens First Bank website and will be redirected to another site.

These sites are not under the control of Citizens First Bank. Citizens First Bank is not responsible for the content of linked third party websites. We are not an agent for these third parties nor do we endorse or guarantee their products. We make no representation or warranty regarding the accuracy of the information contained in the linked sites. We suggest that you always verify the information obtained from linked websites before acting upon this information. Also, please be aware that the security and privacy policies on these sites may be different than Citizens First Bank policies, so please read third party privacy and security policies closely. If you have any questions or concerns about the products and services offered on linked third party websites, please contact the third party directly.

Proceed
Home Blog Can You Claim Home Office Deductions?
Single Post Featured Image

March 29, 2021

Can You Claim Home Office Deductions?

Find out if you qualify for home office tax deductions

Due to the ongoing pandemic, many businesses are still utilizing a work-from-home model. You might be wondering if this transition yields any tax breaks for you. If you work from home and want to claim home office tax deductions, here are the main points to know.

You are self-employed

You only qualify for home office deductions if you are an employer, business owner, or independent contractor. If you are an employee working from home, you unfortunately do not qualify for these tax breaks. However, depending on your state, you might be able to claim some tax deductions for your state filing.

Your home meets the “exclusive and regular use” requirements

Your home can qualify for tax deductions if a portion of your house is used for your business on a regular and exclusive basis. Whether it is an apartment, condominium, or houseboat, as long as it is used exclusively for business and not shared for a different purpose, you can qualify for tax deductions. This also applies to structures on your property, such as an unattached studio, barn, greenhouse, or garage. This does not include any part of a taxpayer’s property like a hotel, motel, or other business.

Your home is your principal place of business

If you use your residence as the principal place of business or as a place you regularly meet with clients and customers, you may qualify for home office deductions. It does not have to be the only place you meet customers, but if you utilize the space for administration or management activities, you might be able to claim the deductions.

Your home is used to provide daycare services

If you provide daycare services in your home for children, older adults, or individuals with disabilities, you are exempt from the “exclusive-use” requirement. You can use other parts of the house for personal activities and still qualify for home office tax deductions. Nevertheless, to claim that tax break, your home care business must meet any applicable state and local licensing requirements.

Your home is used as storage for your business

You are also exempt from the “exclusive-use” requirement if you allocated a space in your residence for regularly storing inventory or product for your business. If you use part of your principal place of business for storage, exclusive use of space is not required, but regular use of space is still required. That space qualifies for tax deduction if that is the sole fixed location of the business.

As a self-employed individual, federal income tax home office deductions can be a major tax-saver. The biggest obstacle is to meet the “exclusive and regular-use” requirements throughout the entire year. If you are unsure on how to move forward with claiming these tax deductions, consult a tax advisor or use a tax online software.

Facebook0
Other posts you may like

How to Save Money on Gas

Financially beneficial changes to make to your driving lifestyle. For most families, gas expenses make up a large portion of their monthly budget with work commutes, school drop-offs, and getting the kids to and from activities and practices. Gas prices can also be unpredictable, so it’s not always a consistent expense. Learn ways to make […]

Other posts you may like

Can You Claim Home Office Deductions?

Find out if you qualify for home office tax deductions Due to the ongoing pandemic, many businesses are still utilizing a work-from-home model. You might be wondering if this transition yields any tax breaks for you. If you work from home and want to claim home office tax deductions, here are the main points to […]

Recent Article


How to Save Money on Gas

April 7, 2021

Recent Article Featured Image

You May Also Like


What to Know Before Buying Your First Home

March 25, 2021

What to Do With Your 2021 Summer Travel Budget

March 12, 2021

4 Reasons to Shop for Groceries Online

March 9, 2021

What to Know Before Investing in Cryptocurrency

February 26, 2021

  • Home
  • Privacy Policy
  • Contact Us
  • Blog
  • Site Map

©2021 Citizens First Bank. Equal Opportunity Employer. Member FDIC. Equal Housing Lender.

FDIC logo