February 15th, 2016
Owning your own home is an extraordinary thing. It isn’t just that the house is yours, it’s all of the possibilities that go along with it: community involvement, having a family and making lasting memories. But owning your own home also comes with a set of adult responsibilities: paying the mortgage, homeowners association fees and carrying a homeowner’s insurance policy. The bills can add up quickly, but when your home also doubles as your workplace, there are benefits to be had.
Check out these five careers that are homeowners insurance tax deductible.
Cutting Yourself a Tax Break
To deduct any home expenses on your taxes, you first have to file Form 1040, US Individual Tax Return, and itemize your deductions on Schedule A (Form 1040), as required by the Internal Revenue Service (IRS). The number one way to get a break? Filing for a home office deduction. When you file for a home office deduction, you are able to deduct some housing expenses, including your homeowners insurance premiums.
For a good deduction on your homeowners insurance, making your agent aware of your home office is an absolute must. According to Forbes Magazine, 1 in 5 Americans work from home, with research estimating that that number will grow by 63 percent in the next five years. As one of those individuals working from home, it’s important that you know about and reap the benefits owed to you. When you work in an office building, it’s the company that pays for the electricity, Wi-Fi and office equipment. When you work from home, those costs show up on your monthly statements. If you’re the victim of a house fire or flood, the exorbitant costs of replacing your things, on top of your work-related items, could cost you your livelihood. Homeowners insurance will protect you from financial harm, and your tax deductible will help you replace anything your insurance somehow couldn’t cover.
Sales representatives market goods and services for a variety of companies, hoping to sell company product to other businesses, organizations or agencies. A good sales rep is people friendly, goal-oriented and someone who enjoys attending trade shows and conferences to build their professional repertoire. As a sales rep who works from home, your house is the company office. According to the Bureau of Labor Statistics, (BLS) sales representative jobs are expected to increase by 6 percent by 2024, with a mean earning range of $61,960. Imagine earning this salary all from the comfort of your own home?
According to the Pew Research Center, 3 in 10 US jobs are held by the self-employed and their staff, with a total of 14.6 million self-employed individuals over all. As self-employment is on the rise, so is working from home. Those that are self-employed are entrepreneurs, freelancers, designers and programmers. If you find that your creative energy is stunted in an office, consider working from home.
Day care professionals often run their business from their own home. Childcare workers look after young children (usually between the ages of three months and five years of age) while their parents and guardians are at work. Childcare professionals attend to every need of a child, including, bathing and feeding. Many childcare providers teach young children their ABCs, numbers and colors through games and activities.
Ever hear of the nanny clause? As a homeowner, if you are employing a nanny (also known as a household worker) who lives in your home, you are entitled to a tax break, this doesn’t matter if they work full or part-time. Similar to a daycare provider, nannies provide personal care to young children while their parents or guardians are at work or away. According to Nanny Contract, nannies are nurturing, loving and constant companions to the children they watch over. Some of their responsibilities include: planning meals, planning educational activities and discipline.
Similar to the nanny clause, employing a private caregiver in your home is homeowners insurance tax deductible. If you work out of the house, it’s difficult to provide the care your ill loved one needs and deserves. While assisted living facilities are an option, you don’t want to move your family member out of the house—you love them, and you want things to be as normal for them as possible.
Private caregivers give round-the-clock service, and your parent, child, or spouse will be able to remain in the house and be well taken care of. Private caregivers assist your ill family member with eating, bathing, activities and taking their medicine. While you’re at your work, you are comforted knowing that your family is being well looked after.
There are a number of jobs that are homeowners insurance tax deductible, whether you are the employer or employee. Find the homeowners insurance policy that meets your family needs at CoverHound today!