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Home Office Deduction

August 22, 2026 · Aditya Gupta

Tax

The home office deduction lets self-employed individuals deduct expenses for a portion of their home used regularly and exclusively for business. Two methods: simplified ($5/square foot up to 300 sq ft, max $1,500) or actual (calculate percentage of home used for business, apply to utilities, mortgage interest, depreciation, insurance, repairs). Actual method usually generates larger deduction but requires more record-keeping. Employees can no longer claim home office for unreimbursed expenses (post-2017). For W-2 remote workers, the deduction is no longer available federally; some states still allow it. The home office must be your principal place of business or regularly meet clients.

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