Questions 153-154 refer to the following information.
Tax Deductions for Telecommuters
Telecommuting employees are eligible for a number of deductions that can be applied to their income tax calculations. Those incurring home office costs related to new equipment purchases, such as computers, monitors, phones, and printers, may deduct the cost of this equipment in one of two ways. They may deduct the full cost of an item in the same year it was purchased or spread out the cost over seven years. So, for example, an item worth $70 may be fully deducted the first year or deducted by $10 each year for seven years. Employees who frequently use phones for business purposes also qualify for deductions, provided they can show documents as proof that their phones were used during office hours. Occupancy expenses, including rent, mortgage payments, and home insurance coverage, are partially tax-deductible, depending on the amount of home space used for work. For questions about this information, please contact the human resources manager for your branch of the company.
