1. Short title
This Act may be cited as the “Home Office Deduction Act of 2020”.
Home Office Deduction Act of 2020
A BILL
To temporarily allow a deduction for the trade or business expenses of employees.
2. Temporary deduction for trade or business expenses of employees
In general— For purposes of the Internal Revenue Code of 1986—
the qualified employee trade or business deductions of any taxpayer for any taxable year shall not be treated as itemized deductions, and
in the case of an taxpayer who does not elect to itemize such taxpayer’s deductions for any taxable year, the taxable income of such taxpayer for such taxable shall be reduced by the qualified employee trade or business deductions of such taxpayer for such taxable year.
Qualified employee trade or business deductions— For purposes of this section—
In general— The term qualified employee trade or business deductions means so much of the taxpayer’s employee trade or business deductions for the taxable year as exceed 2 percent the taxpayer’s adjusted gross income (as defined in section 62 of the Internal Revenue Code of 1986) for such taxable year.
Employee trade or business deductions— The term employee trade or business deductions means so much of the deductions allowed by section 162 of the Internal Revenue Code of 1986 (determined without regard to section 67(g) of such Code) as are attributable to amounts paid or incurred—
in the trade or business of being an employee, and
during the period beginning on March 13, 2020, and ending on December 31, 2020.
Phase-Out based on modified adjusted gross income—
In general— In the case of any taxpayer for any taxable year, the amount of qualified employee trade or business deductions taken into account under subsection (a) (determined without regard to this subsection) shall be reduced (but not below zero) by the amount which bears the same ratio to the amount of such deductions (as so determined) as—
the excess of—
the taxpayer’s modified adjusted gross income for such taxable year, over
$200,000 ($400,000 in the case of a joint return), bears to
$50,000 ($100,000 in the case of a joint return).
Modified adjusted gross income— For purposes of this subsection, the term modified adjusted gross income means the adjusted gross income of the taxpayer (as defined in section 62 of the Internal Revenue Code of 1986) for the taxable year increased by any amount excluded from gross income under sections 911, 931, and 933 of such Code.