Question

Taxpayer A is employed by an Internet based corporation as a technical support representative and is paid a salary of $65,000 per year. They are required to work from home and use the 250 square foot den in their 900 square foot apartment exclusively for this purpose. Total costs for 2020 were as follows: Apartment rent paid $22,000; apartment maintenance costs paid $750; property taxes paid $200; CCA on laptop $300.

Calculate maximum employment expense deduction for 2020

Answer 1

As per the IRS (Pub 529 - 12/2019) unreimbursed employee expenses are deductible provided the employee falls in any of the following categories of employment -

• Armed Forces reservist (member of a reserve component)
• Armed Forces reservists traveling more than 100 miles from home
• Qualified performing artist
• Fee-basis state or local government official
• Employee with impairment-related work expenses
• Eligible Educator

In the given case Taxpayer A doesnot falls in any of the above catefory and hence is not eligible for any employment expense deductions.