It’s been a tough year for all businesses and homes. You no doubt have extra expenses you didn’t plan for in the past. Can you write off COVID supplies? We will answer which are eligible below.
1. Write off All the Basics
Have you had to buy masks, sanitizer, and other items to keep your workplace nice and clean? These are tax deductible at office supplies. You may write off such COVID supplies for the office as:
- Hand sanitizer.
- Masks – disposable and cloth.
- Cleaning supplies such as wipes, bleach, air spray, etc.
- Forehead thermometers.
- Posters to show best sanitation practices.
- Alcohol prep pads.
- Disposable gloves.
- Floor decals.
- Plexi-glass separators.
- Even air purifiers.
We recommend purchasing these items at an office supply store in as few purchases as possible to have the receipts handy.
2. The Home Office Deduction
Those of you working from home have most likely had to set up your own, dedicated home office. You must meet two requirements to take the deduction. Firstly, you must exclusively and regularly use your home office for business. You may not set up a laptop in a playroom, man cave, kitchen table, etc. and claim it as a home office. Secondly, the home office must be your primary place of business. This includes performing work, billing, meeting clients, and other related tasks.
We recommend consulting with a bookkeeper or tax professional before attempting to claim this deduction, as many complications can arise.
3. Charitable Giving Deduction
In the past, one must have itemized their tax return in order to write off charitable giving. The federal Coronavirus relief bill put an end to that. It allows you to get a $300 tax break without itemizing. The bill allows for a partial above the line deduction in regards to charitable contributions. Those who take the standard deduction — $12,400 for single taxpayers and $24,800 for married-filing-jointly in 2020 — may write off up to $300 in donations.
You may read more about it by visiting the IRS official page on charitable contribution deductions.
Houston Bookkeeping & How to Write Off COVID Supplies
Are you a small to mid-sized business that needs help writing off your COVID supplies. Feel free to contact us if you live in the Houston or surrounding area and need help filing for taxes, deductions, or expert bookkeeping.
