Americans working from home can claim significant tax deductions

A tax expert has highlighted that Americans who work from home might qualify for significant tax credits this filing season. Mark J. Kohler, a CPA and tax lawyer, stated that deductions for home offices and car expenses can greatly benefit those managing remote work. With the tax deadline approaching on April 15, Kohler noted that over 22 million Americans are currently working from home. He emphasized the importance of the S-Corp home office deduction for anyone running a business or freelancing from their homes. To claim these deductions, certain criteria must be met. For instance, taxpayers must use a part of their home exclusively for business. Additionally, only self-employed individuals or business owners can typically claim such deductions, while employees face specific requirements. Kohler also debunked some common tax myths. He explained that expecting a large tax refund is often misguided, as it usually means overpaying taxes throughout the year. Instead, he advised focusing on strategies to minimize tax liabilities continuously. Another myth Kohler addressed is the belief that one must file taxes by April 15. He mentioned that it can be strategic to file later, and there is no immediate penalty for missing the deadline. For those considering starting a side business, he encouraged viewing it as a legitimate venture to maximize tax benefits. Lastly, he clarified that business owners can hire their children, making the salaries deductible and benefiting the family. Tax season began on January 27, and those needing more time can file for an extension until October 15. Taxpayers can check their refund status using the IRS online tool, “Where’s My Refund?” to monitor processing times and avoid mistakes.