"There are two ways to claim a home office on your taxes: by calculating (and deducting) the percentage of home expenses directly related to your home office, or by calculating the square footage of your home office and deducting $5 per square foot. The first method is more complicated and requires quite a bit of math, not to mention extensive documentation, including receipts and utility bills. The second method is more straightforward; all you need to know is the size of the space."
"However, while some tax deductions require you to provide receipts to justify the write-off, there are a handful of deductions you can qualify for if you have other financial documents instead. We'll review those deductions below, but remember to discuss these options with your tax professional or accountant, as they're the only ones who can offer advice specific to your unique financial situation."
Tax season approaches and taxpayers risk losing deductions if receipts were discarded, but some deductions accept alternative financial documents. Home office deductions can be claimed by calculating the percentage of home expenses tied to the office with detailed documentation, or by using a simplified method that deducts $5 per square foot of dedicated space. Self-employed individuals can deduct a portion of business-related cell phone bills by documenting the percentage of phone use for work and retaining copies of monthly phone bills. Tax professionals or accountants can provide advice tailored to individual financial situations.
Read at financebuzz.com
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