Home Office Deduction: The Right Way to Write Off Your Workspace

Do you work from home? Whether you’re self-employed, a remote worker, or running a side hustle, you may be eligible for the home office deduction — a powerful way to lower your tax bill by deducting expenses related to your home workspace.

Who Qualifies?

To claim the home office deduction, you must:

• Use part of your home exclusively and regularly for business

• Use that space as your principal place of business

A spare bedroom, basement office, or even a dedicated corner of your living room can qualify — as long as it meets the exclusive-use rule.

Two Ways to Claim the Deduction

• Simplified Method:

  • Deduct $5 per square foot, up to 300 square feet (max $1,500)

• Actual Expense Method:

  • Deduct a portion of your actual expenses (mortgage interest, rent, utilities, repairs, internet, property taxes, etc.)

  • You’ll calculate the percentage of your home used for business and apply it to those expenses

Pro Tips

• Keep records and receipts if you’re using the actual expense method

• The simplified method is easier but may result in a smaller deduction

• You can even depreciate part of your home if you own it — though that comes with some future tax implications (like depreciation recapture)

The home office deduction is often overlooked or misunderstood — but when done correctly, it can shave hundreds or even thousands off your tax bill. Just make sure you meet the criteria and document your workspace properly.

Disclaimer: The information provided in this blog is for general informational purposes only and should not be considered tax, legal, or financial advice. While we strive to ensure the accuracy and reliability of the content, we do not guarantee it and accept no responsibility for any errors or omissions. Tax laws are subject to change, and individual circumstances can vary. Always consult with a qualified tax professional before making any decisions regarding your taxes or finances.