Free Tax Tool

Home Office Deduction Calculator

If you’re self-employed and work from home, you may be leaving money on the table. Compare the simplified and actual methods side-by-side to see which deduction saves you more.

Calculate Your Deduction

Enter your home office details and expenses below.

W-2 employees: The home office deduction is only available to self-employed individuals (Schedule C, sole proprietors, single-member LLCs, independent contractors). If you’re a W-2 employee working remotely, you unfortunately cannot claim this deduction under current tax law.
150 sq ft Dedicated office space
253005007501,000
2,000 sq ft Entire home
3001,5003,0004,5006,000

Annual Home Expenses

Enter your total annual amounts. These are only used for the actual method calculation.

From Form 1098
Annual real estate taxes
Electric, gas, water, internet
Homeowner’s or renter’s insurance
General home repairs only
Cost basis ÷ 39 years (we can help calculate)

Two Methods, One Goal

01

Simplified Method

Multiply your office square footage by $5 per square foot, up to a maximum of 300 sq ft. No need to track individual expenses. Maximum deduction: $1,500.

02

Actual Method

Calculate the percentage of your home used for business, then apply that percentage to your actual home expenses—mortgage interest, utilities, insurance, repairs, and depreciation.

03

Pick the Winner

You can choose either method each year. The actual method often wins for larger offices or expensive homes, but the simplified method saves you the hassle of tracking receipts.

Important: This calculator provides estimates for educational purposes only. The home office must be used regularly and exclusively for business to qualify. Actual deductions depend on your specific situation, including net business income limitations. The simplified method is capped at $1,500 (300 sq ft × $5). The actual method may also include depreciation of your home, which has recapture implications upon sale. Consult with a tax professional for personalized guidance.

Not sure which method is right for you?

We’ll review your situation and make sure you’re taking the largest deduction available—without the guesswork.

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Allen, TX 75013

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