Your Home Office
Both methods calculated automatically
Regular Method — Annual Home Expenses
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Your Tax Situation
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Method Comparison
Switch freely between methods each year
Simplified Method
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Deduction amount
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$5 × 0 sq ft (max 300)
Regular Method
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Deduction amount
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0% business use
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Regular Method Breakdown
Total Indirect Expenses
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Business Use Percentage
Office sqft ÷ total sqft
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Regular Method Deduction
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⚠️ Simplified: $5/sqft on up to 300 sqft of dedicated office space = max $1,500. Regular: actual expenses × business use %. W-2 employees cannot claim this deduction. Space must be used exclusively and regularly for business. Not tax advice.
Qualification Rules
Who qualifies for the home office deduction?
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Who qualifies
Self-employed workers, freelancers, independent contractors (1099), sole proprietors, and single-member LLC owners. Space must be used regularly and exclusively for business, and must be your principal place of business or where you regularly meet clients.
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Who doesn't qualify
W-2 employees cannot claim the home office deduction — the Tax Cuts and Jobs Act suspended this deduction for employees through at least 2025. Even if your employer requires remote work full-time, you cannot deduct home office expenses if you receive a W-2.
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The exclusive use rule
The space must be used exclusively and regularly for business — not occasionally, not as a dual-purpose room. A dedicated home office room qualifies. A kitchen table where you sometimes work does not. Keep documentation: photos, floor plans, and a clear business designation.
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FAQ
Home office questions
Should I use simplified or regular method?+
Use whichever produces the larger deduction — you can switch each year. Simplified ($5/sqft, max $1,500) is easier and requires no expense tracking. Regular (actual expenses × business use %) often yields a larger deduction in expensive rental markets. Our calculator compares both automatically.
Can I deduct my entire rent?+
No. Under the regular method you deduct only the portion of rent corresponding to your office's share of total square footage. If your office is 10% of your home and annual rent is $24,000, you can deduct $2,400. Under simplified, the maximum deduction is $1,500 regardless of actual rent.
Does the home office deduction trigger an audit?+
This reputation has faded as remote work normalized. As long as you genuinely meet the exclusive and regular use requirements and maintain documentation, it's a legitimate deduction. The simplified method has lower audit exposure since it has a defined cap and no depreciation recapture issues.
What is depreciation recapture?+
If you own your home and use the regular method, part of your deduction may include home depreciation. When you sell, that depreciation is "recaptured" and taxed up to 25%, even if your overall gain is excluded by the primary residence exclusion. This hidden cost makes the simplified method attractive for homeowners planning to sell.