Can I have a Tax deductions for rent, utilities if I work from home and receive a W-2 from my employer?

I would like to know if i can deduct a percentage (25%) of my expenses (rent, utilities, phone, computer) since I work from home and i have an exclusive office. I received a W-2 from my employeer, PLEASE ADVISE......

Yes, as long as you don't use the office for personal (non-work) things--the room has to be used regularly and exclusively as your office. We use this deduction because my husband telecommutes and has an office in our house--the office isn't used for anything else (this is an important condition of the deduction).

The percentage is based on the square footage of the office compared to the square footage of your entire home (or divide the number of rooms used exclusively for business by the total number of rooms in your house if the rooms are the same size in your home). So you would use 25% if you had, for example, 4 rooms that are about the same size, and your office was one of those rooms, or if your office took up about 25% of the space in your home (the percentage we use is 10%, as his office is 10% of our house).

You can deduct the room's portion of real estate taxes, mortgage interest, rent, utilities, insurance, painting, repairs and depreciation.

You can claim a home office deduction if your home office is your EXCLUSIVE place of business AND if it's used EXCLUSIVELY for business purposes. Since you are a W-2 employee, the home office must be a REQUIREMENT of your employer, not for your choice or convenience.

You may apportion the costs using the ratio of the square footage of the office area compared to the total square footage of your home. If you use an entire room and the rooms are approximately the same size then you can apportion by the number of rooms.

You can deduct the business portion of your rent, utilities, renter's insurance, and long distance phone calls. You can't deduct any portion of the first phone line or internet connection. If you have a second phone line or internet connection that terminate in the office and are used exclusively for business then you can deduct those. Any business supplies, etc. are deductible. Equipment is normally depreciated over its useful life.

A very important detail which has been left out of the other answers - you are a W2 employee so this office must be for the convenience of the employer and a condition of employment. If it is for YOUR convenience to work from home sometimes then you get no deduction. Assuming your employer has required you to maintain this office the other answers explain how to deduct it.