Regarding general Notary tax advice and mileage deductions, this is simply basic information, and each person’s tax position may be different. Contact the IRS or your tax counselor if you have particular questions regarding your tax status.
Reminder: As of 2018, only self-employed taxpayers are eligible for the home office deduction. Employees are unable to claim the deduction because there is no total deduction for employee business costs. Despite the pandemic forcing many workers to work from home for all or part of 2022, the law remains unchanged. This means that the employee business cost itemized deduction is still not available.
What are the key actions Notaries should take in order to qualify for a home office deduction?
Your home office must be utilized regularly and solely for business operations in order to qualify for the deduction. You must select a space in your home, either a distinct room or a portion of a room, that will be used exclusively for your trade or company.
The “exclusive” test has various exceptions, such as for rooms used for daycare facilities and areas used for inventory storage.
You can deduct $5 per square foot up to a maximum of 300 square feet (a $1,500 maximum deduction) using the streamlined “safe harbor” option. The safe harbor option does not necessitate extensive recordkeeping, but the maximum $1,500.
What documents pertaining to home office deductions ought Notaries to keep?
The home office deduction enables you to write off a portion of personal expenses that would otherwise be non-deductible, such as utilities, house insurance, repairs, and depreciation, as business expenses. Examples of such expenses include mortgage interest and real estate taxes. You must maintain all invoices and receipts that support these claims.
See the “What’s new?” section of the Schedule C instructions for more 2022 changes that affect self-employed taxpayers. Consider hiring a tax expert with experience in small business returns because taxes change annually.