Our previous blog discusses the home office deduction and how it is not available to W2 employees working at home due to COVID.

In addition, at-home employees cannot deduct equipment, such as computers, printers and supplies, postage, business meals, and miles driven for business, not even telephone and internet expenses, even though they are using them for work.

How does an employee get made whole for using their own items for business usage?  The only way is through their employer.  The employer will get the deduction for such expenses.  However, there is a caveat as to how this reimbursement is handled as either taxable or non-taxable to the employee. To be non-taxable for the employee, it must be an accountable reimbursement, where there is an accurate accounting of actual employee expenses, and not a general stipend for using personal items for work.

It is now time to pour a hot cup of coffee and sit down with your credit card and cash receipts to determine how much your employer could reimburse you for your work related expenses, if you had to work from home during this pandemic.

If you need further clarification on this topic or have other tax related concerns, Killingsworth Spencer is a great resource for business owners and employees alike.  We always want the best possible outcome for all our clients.