Important Disclaimer
This article provides general information only. Consult a qualified tax professional for advice specific to your situation. Tax laws vary by country and change frequently.
The Home Office Deduction (USA)
If you’re self-employed or a freelancer, you may qualify to deduct home office expenses. Employees who work remotely generally cannot claim this deduction under current IRS rules (post-2017 tax reform eliminated the employee home office deduction).
Two Methods for Calculating the Home Office Deduction
1. Simplified Method
Deduct $5 per square foot of dedicated home office space, up to 300 square feet maximum = $1,500 max deduction. Easy to calculate, no depreciation to track.
2. Regular Method
Calculate the percentage of your home used for business (office sq ft ÷ total home sq ft). Apply that percentage to home expenses: rent/mortgage interest, utilities, insurance, repairs. More complex but often results in a larger deduction.
Other Deductible Home Office Expenses (Self-Employed)
- Equipment: Computer, monitor, keyboard, webcam, headset
- Furniture: Desk, ergonomic chair, filing cabinet
- Software: Subscriptions for work tools
- Internet: Percentage of internet bill used for work
- Phone: Percentage of phone bill used for work calls
- Office supplies: Paper, ink, stationery
Required Documentation
- Receipts for all claimed expenses
- Photos of dedicated office space
- Records showing space is used “regularly and exclusively” for business
FAQ
Can a dining table count as a home office?
No. The IRS requires the space be used “regularly and exclusively” for business. A dining table used for meals cannot qualify, even if you work there daily.