Title: Home Office Deduction Act of 2020
Policy area: Taxation

Summary:
Home Office Deduction Act of 2020
This bill allows a tax deduction for the trade or business expenses of employees during the period beginning on March 13, 2020, and ending on December 31, 2021.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9017 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 9017

To temporarily allow a deduction for the trade or business expenses of 
                               employees.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 17, 2020

 Mr. Morelle introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To temporarily allow a deduction for the trade or business expenses of 
                               employees.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Home Office Deduction Act of 2020''.

SEC. 2. TEMPORARY DEDUCTION FOR TRADE OR BUSINESS EXPENSES OF 
              EMPLOYEES.

    (a) In General.--For purposes of the Internal Revenue Code of 
1986--
            (1) the qualified employee trade or business deductions of 
        any taxpayer for any taxable year shall not be treated as 
        itemized deductions, and
            (2) 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.
    (b) Qualified Employee Trade or Business Deductions.--For purposes 
of this section--
            (1) 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.
            (2) 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--
                    (A) in the trade or business of being an employee, 
                and
                    (B) during the period beginning on March 13, 2020, 
                and ending on December 31, 2020.
    (c) Phase-Out Based on Modified Adjusted Gross Income.--
            (1) 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--
                    (A) the excess of--
                            (i) the taxpayer's modified adjusted gross 
                        income for such taxable year, over
                            (ii) $200,000 ($400,000 in the case of a 
                        joint return), bears to
                    (B) $50,000 ($100,000 in the case of a joint 
                return).
            (2) 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.
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