Work-from-Home Expense Deduction Calculator
Estimate your potential tax deduction for home office expenses. Compare the regular method (actual expenses) vs the simplified IRS method.
What home office expenses are tax deductible?
Common deductions: home office portion of utilities, rent (if self-employed), mortgage interest, property taxes, insurance, repairs, equipment, furniture, internet, phone. Must be used exclusively and regularly for business. The simplified method offers $5/sq ft up to 300 sq ft.
Can I deduct home office if I'm an employee?
As of the Tax Cuts and Jobs Act (2017), employees can no longer deduct unreimbursed business expenses, including home office. This applies to W-2 employees. Self-employed individuals and freelancers can still claim home office deductions.
How do I calculate the business-use percentage of my home?
Divide the area used for business by total living area. Example: 120 sq ft office in 1,200 sq ft home = 10% business use. Apply this percentage to shared expenses (utilities, insurance). Exclusive-use rooms get 100% deduction for that space.
What records should I keep for home office deductions?
Keep: floor plans showing measurements, utility bills, receipts for all expenses, mileage logs for business travel, photos of workspace, time logs showing regular use. Maintain records for at least 3 years. Use dedicated business credit card for easier tracking.
Can I deduct a portion of my rent if I work from home?
Self-employed individuals can deduct rent proportional to business use. If you use a 100 sq ft office in a 1,000 sq ft apartment (10%), and pay $2,000 rent, you can deduct $200/month. Must have a dedicated workspace and documentation of exclusive business use.