The home office deduction is one of the most valuable deductions available to freelancers. It can be claimed by anyone who conducts their business from their home. According to the IRS, the home office area must be used regularly and exclusively as the principal place of business.
Due to the Covid19 pandemic, many practicing therapists had to resort to conducting their therapy sessions from the premises of their homes.
As a therapist, if you conduct your therapy sessions from the premises of your home and have a dedicated space in your house just for your business, you can qualify for the home office deduction. Your home office must serve as a space where you conduct your administrative work and also deal with your clients- meeting clients, or consulting them over Zoom or other video services, or through the phone.
To claim the home office deduction, you will be required to keep detailed records and to calculate the square footage of your workspace. Generally, the IRS offers two methods- the simplified method or the regular method. If you wish to claim the largest home office deduction you’re entitled to, you’ll have to calculate the deduction using both the regular and simplified methods.
Sounds complex? Try FlyFin’s home office tax calculator. The app will compute the data provided by you and provide you with an accurate tax amount. The app is powered by AI and backed by CPAs whom you can consult to determine which method works best for you.
Want to know more about FlyFin? Head on over to https://flyfin.tax
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