Question for home based employees
 

For the last 2 1/2 years, I have been employed by a small software company. I am home based, travel roughly 1/4 to 1/3 of the time, otherwise at my home office. The company pays for a phone line, DSL, cell phone, and provides a laptop. They also give a $100 gift check every year to the employees that are too far from the company office to make it to the company Christmas party so we can have our own little celebration.

Prior to this, I was self-employed for about 8 years doing pretty much the same work I am doing now. During that time, I took the home office tax deduction, including a % of the house payment, electricity, and various other household expenses.

Now the question, my wife thinks I should push for additional reimbursement for a portion of the electricity bill, space used, etc. I figure I am way ahead by not having a daily office commute, and don't really want to nickel and dime my employer. Since this is a small company, they don't have any written policies to cover this. I am curious what the norm is here, so for the rest of you home based employees out there, what does your company cover?

Be happy
 

I was home-based for about 3-4 years and was provided with DSL, cell phone, car allowance and a land line specifically for work. I also claimed the benefits on my tax returns.

Other than those mentioned, the benefit of working from home is already a huge convenience.

Trying to claim too much like rent space, electricity, etc. for your home sends the wrong message to your employer.

Your wife sounds like a real drag.

If you have to have at least one room set aside for their exclusive use, and if your electricity shoots up considerably, then I might broach the subject. If there are others in the company who do the same thing, you might casually ask them if they get reimbursed for anything above and beyond.

If not, then I'd just let it drop. The costs associated for driving into work, drycleaning, etc usually outweigh the minor costs with working out of your house. I think you can certainly take these costs off your taxes, but of course double check with your CPA.

IMHO, you have a pretty good deal going already, and shouldn't rock the boat. If you change companies, and continue to work at home, I'll bet you get less, not more.

As others have pointed out, you're probably spending less on the office in the home than you are on commuting, etc.

BTW, on the taxes, I recall that they changed the rules a few years ago, and if you don't see clients in your home, you'll have trouble deducting a home office.

So, do you give your employer a check for the gas, wear and tear on your vehicle, toll costs and other expenses you do not incur as a result of having to go to an office? :D

I know of no company that reimburses for electricity and space use at home.

They could always just say... "Well, if you want those reimbursed, it is not worth it to us. On Monday, start reporting to the office each day." :)

Here is a page that you may find helpful:

http://www.irs.gov/newsroom/article/...108138,00.html

OT and probably a better topic for an OMNI thread ;)

I will check with a couple of my co-workers just to make sure this is not something the company is paying others.

Regarding taxes, I don't meet the Home Office deduction rules, and unreimbursed business expenses are only deductible to the extent that they exceed some percentage (2%, I think) of income.

Thanks for all of the other responses, they pretty much confirm my feelings on the topic. Since I am happy with who I work for, who I work with, what I do, and my general working conditions, I am certainly not going to start playing the role of "difficult employee".

I am in the same position -- although my travel is about 40-50%.

My company reimburses my long distance, second phone line, cable Internet, dial-up internet (backup and on the road when needed), and BlackBerry/Cell Phone.

I benefit much more from working at home than the pennies it costs me to do it. Would cost me much more to work in an office. Can't wear sweatpants to an office :)

Sounds like you dress up for work more than I do :p

... or do conference calls in your boxers.

Audit
 

I also work from home with 25%-30% travel. When I discussed deducting office space etc., my account said I could do it, but the tax savings would not increase nearly as much as my odds for an audit. In fact, he used the phrase "automatic audit."

I dont want to go through that, so I dont claim it.

Self-employed, home-based. I don't take the deduction because it gives The Great Satan [The IRS] another flag for auditing.

Exact same situation as OP.

I also don't claim my home office since it's a red flag for audit.