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I receive a W-2, as an employee, and I now work a permanent hybrid schedule but I can come into the office if I want to. I'm classified by HR as a hybrid employee. I know the federal home office deduction is suspended for W-2 employees until 2025. But New York State will still accept it on their tax returns. The question is do I have merit to claim the home office deduction?

I work a few days at home and a couple of days in the office. It is not because of covid-19 but the work culture changing as a result of the covid-19 pandemic. On the other hand, my employer allows me to voluntarily come into the office on the days I work remotely. They're not stopping me from coming in. It's optional.

So, with all that being said, can I claim a home office expenses deduction for NY State? I It feels like a gray area. What's my main office? I'm not sure. It's 60-70% remote and 30-40% in the office. My employer is not barring me from the building on the days I work remote and HR classifies me as hybrid. I don't know what the right answer is here.

For the W-2 Employee expenses deduction, can I deduct things you would normally deduct for home office deduction such as a portion of my utility bills, coffee supplies, and my home office square footage?

Edit: The company/HR made a organization-wide decision that majority or even most employees are now classified as hybrid employees. That was not a decision made by the employees. It was decided by the company. The hybrid schedule is, every week, a few days working remotely and 2 days in the office. I have to come into the office 2 days a week. If I want to come into the office on the remote days, I could (I may or may not need to get written permission to do so). But even if I come in, I'd still be classified as a hybrid employee and, as such, they regularly expect me to be working remotely those few days a week. I hope that makes things a bit clearer.

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So, with all that being said, can I claim a home office expenses deduction for NY State?

No. In order for the deduction to be allowed, it must be ordinary and necessary. You fail the necessity test since you can work from the employer's location, just chose not to.

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  • Hmm. Yes, I can work from the office on remote days. But HR classifies me as a hybrid employee and that was something they decided, not me. It's an organization-wide decision, not just isolated to a few people. The company made the decision that the majority of people work a hybrid of remote and office. That's where I'm getting hung up. Sure, I can choose to come into the office on my designated remote days but the company/HR chose to designate this hybrid schedule company-wide. Ordinary? Company-wide so sounds like yes. Necessary? HR made the choice for people to remote a few days a week.
    – user3621633
    Apr 17, 2022 at 15:24
  • @user3621633 I doubt that argument would hold in court. Unreimbursed employee expenses deduction is a red flag for auditors, especially for higher earners.
    – littleadv
    Apr 17, 2022 at 21:45

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