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Bill

Bill

S 138

Provides gross income tax deduction for home office expenses incurred during COVID-19 pandemic.

2026-2027 Regular Session Introduced by Jim Holzapfel

New Jersey bill would allow home office expense deductions from gross income for COVID-19 pandemic remote work, reducing state tax liability for qualifying workers.

Introduced in the Senate, Referred to Senate Budget and Appropriations Committee
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WeVote Research Nonpartisan
Bill Summary · S 138

Legislative bill overview

S 138 would allow New Jersey taxpayers to deduct home office expenses from their gross income for tax purposes, specifically for expenses incurred during the COVID-19 pandemic. The bill appears to provide retroactive or continued tax relief for individuals who worked remotely during the pandemic period.

Why is this important

Home office expenses can represent significant costs for remote workers (equipment, utilities, internet, furniture), and a tax deduction would reduce taxable income and potentially lower tax liability. Given that remote work became widespread during COVID-19 and some workers have continued this arrangement, this could provide financial relief to affected taxpayers while potentially incentivizing work-from-home arrangements.

Potential points of contention

  • Retroactivity and timing: The bill references "during COVID-19 pandemic" but was introduced in 2026, raising questions about which tax years qualify and whether this applies retroactively to prior returns
  • Revenue impact: Allowing gross income deductions reduces state tax revenue; fiscal note would clarify costs to the state budget during a period of budget constraints
  • Definition and eligibility: The bill lacks specificity on what qualifies as "home office expenses," how much space must be dedicated to work, and whether all remote workers or only certain professions qualify, creating potential fairness and enforcement issues

Compiled from official sources — confirm details with the bill’s official record.

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