Many companies were forced to conduct their business remotely due to the Covid-19 lockdown. Many employers and employees were shocked by the pandemic. As employers or as employees, they recognized the many benefits of working at home. Today, many workers and companies prefer to work from home instead of the traditional office.
Do you want to work from home? Are you already working from home? What about the rest of your team? Are they working from home?
Below are some financial benefits that come with working from home.
What are the financial benefits of working from home?
1. Reduced Work Expenses
It is possible that you are unaware of how much money you spend while working away from your home. You can save thousands of dollars a year by reducing your transport costs.
Spending less on coffee and dining out is also a great way to save money, especially if you do this every day of the week. Let’s say you drink $5 of coffee every day. This could amount to nearly $600 a year.
You can save money on other expenses such as office clothes and laundry.
2. Tax Deductions
The vast majority of employees who are traditional employees will not be able to take advantage of home-office tax deductions unless they meet certain qualifications. Those who are eligible must meet the following requirements:
- Exclusive and regular use of a part of their home exclusively for business
- They must conduct their business from home
Independent contractors, self-employed people, and small business owners can all benefit from the home office deduction. You may be able to benefit instead from the state income tax deduction if you don’t fall into one of these categories.
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