The home office deduction, simplified
Two ways to claim it, one strict rule about how the space is used, and who can’t claim it at all.
The short answer
If you’re self-employed and use part of your home regularly and exclusively for business, you can deduct it using the simplified method ($5 per square foot, up to 300 square feet) or by deducting the actual share of your home expenses.
The use test
The space must be used regularly and exclusively for business and be your principal place of business, or a place where you regularly meet clients. A kitchen table you also eat at doesn’t qualify.
Simplified method
Deduct $5 per square foot of office space, up to 300 square feet, for a maximum of $1,500. No depreciation and little record keeping.
Regular method
Deduct the business share of rent or mortgage interest, utilities, insurance, repairs and depreciation, based on the office’s percentage of your home. It takes more records but can be worth more.
Employees
If you’re a W-2 employee working from home, you generally can’t claim a home office deduction on your federal return. Some states have their own rules.
Questions
Is my home office deductible if I’m an employee?
Generally not on your federal return. The deduction is for self-employed people and business owners who meet the use test.
Your situation isn’t general. A CPA can tell you how this applies to you.
Ask about thisGeneral information as of October 2026, not advice for your situation. Tax rules change; check with a professional before acting.