Home Office Tax Deduction Bill Introduced

Here’s another item from the "lawmakers on your side" department: Congressman John McHugh has introduced a bill that would give people with home offices a standard $1,500 tax deduction.

Sharon McLoone reports, "The Home Office Deduction Simplification Act (H.R. 6214) also would require that the amount be indexed for inflation."  What’s more, "The option of a $1,500 standard deduction would not preclude taxpayers currently qualifying for the home office deduction from continuing to itemize their expenses if they choose."

McHugh explained his move by stating, "While many bills in recent years have made the tax code more complicated – this bill achieves the opposite effect and allows taxpayers to take a simple deduction without apprehension. . . .  People should not pay higher taxes because the tax code is too complex."

The Small Business Administration supports the development, and the bill is moving to the Committee on Ways and Means.  The fact that this is an election year is likely to increase the bill’s chances of getting passed.  McHugh seems to have helped by settling on $1,500 instead of a larger (and therefore more controversial) amount, as well.

Keep your fingers crossed if you already work from home, and if you don’t, consider making the necessary arrangements and then crossing yours, too.