Tax Deductions for Telecommuters

When considering whether you want to take a position where you telecommute, consider the fact that you may be able to write-off part of your home if you work for a company that you communicate strictly by email, mail, telephone, video etc.  Always speak with your Accountant in detail about your individual situation.   

There are tax deductions that you can use if your home office is being used at the convenience of your employer.  The convenience of the employer requirement is satisfied if: 

1. You maintain your home office as a condition of employment-in other words, if your employer specifically requires you to maintain the home office and work there 
2. Your home office is necessary for the functioning of your employer’s business; or 
3. Your home office is necessary to allow you to perform your duties as an employee properly. 

Now that we established whether or not your home office is used for your employer, let’s talk about how your home office space is eligible.  You must use this office space regularly and consistently for work.  The space cannot have dual uses such as spare bedroom for guests throughout the year, kids play room after hours etc. Get where I’m going?   

You will need to figure out what the square footage of your office space is.  You should be able to deduct a portion or % of your expenses based off the square footage.  Again, talk to your Accountant.  If you do have a dedicated home office space, here are some things that may be a tax write-off at the end of the year. 

1. Mortgage / rent 
2. Homeowner’s / renter’s insurance 
3. HOA fees 
4. Real estate taxes 
5. Electric 
6. Heating fuel – gas / oil 
7. Internet 
8. Water / Sewer 

I highly recommend creating a simple spreadsheet like you see in the example below that you can bring with you at the end of the year to your Accountant.  Again, make sure you know the square footage of your Home and the square footage of your dedicated office space so the Accountant can figure out what % of your expenses can be deducted. 

 

Not only is your office space deductible but anything you purchase soley for the use of your job if your employer does not provide these for you or reimburse you for your expenses.  Some examples are: 

1. Computer / laptop 
2. Headset 
3. Mouse / mouse pad 
4. Keyboard 
5. Extra screens 
6. Blue light glasses 
7. Printer 
8. Copy paper 
9. Shredder 

The total home-related expenses will be multiplied by the percentage of “business use” of the home to determine the tax deductible amount 

The IRS also requires that you disclose the percentage of time you spend conducting business inside the home office. 

As you can see, there are some great benefits to working from home.  This list is something to consider when you are considering taking a pay cut as you may not necessarily be “taking a pay cut” with some of the perks of working from a dedicated home office space. 

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7 Tips to set up your Home office

Working from home is an adjustment!  If you are a Nurse who is used to not getting a chance to get off your feet in order to sit for lunch, you are going to struggle having a job sitting 8 hours a day.  But it doesn't mean that you can't overcome some of the challenges.  We just need to get your environment prepared to work from home.  In my many years of working remotely as a Nurse, I have learned what works for me and I am going to share them with you. 

Creating an environment that makes you feel comfortable and relaxed, yet ready to work and be productive is what we are looking for.  I highly encourage you have a dedicated office space with a door to ensure privacy and you are less likely to be distracted by other members in your household.  You will also be less likely to want to run down the hall and throw some laundry in or pull out dinner items.  Remember, working from home is WORK.

Here are 7 tips that might help with the adjustment of sitting at a desk job based on my experience of working from home.

1. Invest in a desk that raises so you can sit or stand when you feel the need to get up and off of your tush.
2. If your company doesn't provide you with an extra screen, buy one.  Having a larger screen and at eye level is a huge must for me and my old tired eyes. You will thank me later.
3. Wear blue ray glasses to protect your eyes from the 8 hour screen time.  Trust me THEY WORK.  I used to get headaches every single day, not anymore.  
4. Have a comfortable adjustable office chair that has a little cushion versus being hard and firm.  You will end up with a lower backache after several days of sitting if not.
5. Light a candle, incense, essential oils, whatever you choose, but having an aroma in your office space helps your mood.
6. Foot rest, I encourage you to have something to rest your feet on so you are not crossing your legs or sitting on them all the time.
7. Lighting is very important.  If you don't have lighting in the ceiling, buying a nice desk lamp that you can adjust and move the light where you need it.  I use both.  I have a ceiling light but once the sun starts coming around to the front of the house, I turn that light off and use my desk lamp.

I hope this blog helps give you some ideas of how to make working from home successful for you.  Me personally, I have no desire to go back to floor nursing as I enjoy working from home and helping patients telephonically.  Not to mention, telehealth and remote patient monitoring is the wave of the future.  More and more nurses will be working from home as the months and years go by.  COVID 19 has forced Healthcare to adjust years ahead of schedule.  Telehealth still gives you the opportunity to develop a relationship, trust, educate and coach in a more conducive environment for learning.  

Marie Pepper's Chronic Care Management Training Course

Working from Home is WORK

Pssst, come here, can I tell you something? It's not what you think.  Working from home is actually WORK.  I hear so many Nurses say that they want to work remotely because they want work/life balance.  Well, that sounds great if you are looking to eliminate an hour commute time from your work schedule but if you are thinking you can do laundry, make dinner, yell at the kids, that is just not the reality when working for companies.

Let me give you a little glimpse of a typical work routine.  Keep in mind that your hours are going to vary based on the job you are offered.  Not every job is M-F 9-5.  As remote Nursing jobs increase, so does the need to have employees who work varied hours in order to be available for their customer base in the evening and weekend.  Let's use the scenario of M-F 10am - 7pm.

• 10am punch in.  Yes, even though you work remote, you will have to log into the employers website that they use for payroll to clock in.
• 12pm take a 10-15 min. break based on the companies break time protocol.  In all my 15 years of experience working from home, you will have to most likely set yourself as "away from desk" or on "break" so your manager is able to see when and when you are not working.
• 2pm punch out for lunch.  Again, you will have to set yourself "at lunch" in the application the employer uses to make them aware you are at lunch and punch out.
• 3pm punch back in from lunch.  You will now make yourself "available" in the system so you are able to take calls and your manager sees you are working.
• 5pm take a 10-15 min break.
• 7pm punch out for the day.

The best way to predict the future is to create it!

How many times do you question yourself about purchases before you make them? If it’s for your kids, you pick it up, buy it and don’t think twice about it. It makes you feel good to provide for them and see them happy right? Have you ever thought about how much money you have wasted on toys that were never played with, clothes that have never been worn or make up that gets used once and tossed to the side. How many clothes do you have in your closet right now with tags still on it? Take a look around your house at all the possessions you have. Do they give you the life you are seeking?

Let's talk about what you really want for a moment.  If you are looking to leave bedside nursing due to stress and burnout, what are you willing to do to make that happen?  I saw a post that someone said if you don't get CEU's or a Certification behind your name, don't pay for it.  WHAT?  That is the most absolute crazy thing I have ever heard.  Then again, maybe that is why I have been working remotely for 15 years.  I have taken countless courses in Management, Staff retention, Being a Leader, Effective communication, the list goes on and on.  I don't have additional letters behind my LPN and I am totally okay with that.  You know why? There is a section on your resume where you enter Training.  You list all the courses you have taken that has increased your knowledge that makes you the BEST fit for the job you are applying for.  Continuing your education isn't about gaining more credentials.  Being a nurse is a lifelong learning process and depending on what direction you want to take your career depends on whether you are seeking out more CEU's a specific certification or just to gain more knowledge in a specific area that will move you towards your end goal.

The best way to predict the future is to create it.  Is your goal to work from home as an LPN or RN?  Then you are going to have show how you obtained skills in order to do that.  Recruiters aren't just going to choose your resume out of 1,000 they receive for each job because you have been a nurse for 10 or 20 years.  You have to have the skills and knowledge.  You can read my previous blog on 7 Remote Skills to learn more about what is needed.

My point for this blog is, if you think spending a couple hundred dollars for a course that will provide training to you in order to obtain a job working from home so you can create work/life balance and sanity; then you are really just okay with being stressed out and burnt out at your current job.  If you aren't willing to put in the time and money on yourself, your situation will never change and you will never grow and most importantly, you will never get the work/life balance you are seeking.

Marie Pepper's Chronic Care Management Training Course