Provides gross income tax deduction for home office expenses incurred during COVID-19 pandemic.
If enacted, A1666 would have substantive implications for state tax law, particularly benefiting those who were compelled to transition to remote work settings as a result of the pandemic. The bill is retroactive and covers deductions for expenses incurred during the COVID-19 public health emergency as declared by the Governor through Executive Order No. 103 of 2020. This provision aims to alleviate some financial burdens faced by individuals who may have incurred additional out-of-pocket costs while setting up or maintaining a home office environment.
Assembly Bill A1666 aims to provide a gross income tax deduction for home office expenses incurred during the COVID-19 pandemic. Sponsored by Assemblyman John Catalano and Assemblyman Brian Bergen, the bill addresses the needs of individuals who have adapted to remote work due to public health guidelines and state mandates. It allows taxpayers, including self-employed individuals, independent contractors, and employees, to deduct expenses associated with using their home as a principal place of business. The definition of a principal place of business is expanded to recognize the realities of remote work during this extraordinary time.
While A1666 seeks to aid working individuals during the pandemic, potential points of contention may arise regarding the classification of deductible expenses. The bill necessitates that taxpayers keep thorough records of unreimbursed supplies and equipment, such as desks, computers, and other materials essential for home office operations. This aspect may lead to questions regarding the adequacy of tracking and proof required for tax deductions, which could create disparities based on individuals' capabilities to maintain such records.