In a recent blog I discussed that unreimbursed employee expenses for a W-2 employee were no longer allowed as a miscellaneous deduction after 2017.  However, that is not true for self-employed taxpayers who report their business on a Schedule C on their personal Form 1040.  Sole proprietors can still use the home office deduction and other related business expenses.  Due to COVID-19, many small businesses that rented office space have now had to move into the owner’s home and these expenses will be allowed.  The taxpayer will be able to deduct a percentage of some of his home expenses, such as utilities and rent or mortgage. If the taxpayer and his spouse file jointly, but only the taxpayer owns the business, his spouse cannot take advantage of the deduction, as she does for itemized deductions on Schedule A, so only that portion of the home actually used for the business can count toward the deduction.