Home Office Deduction Calculator
Enter the office square footage and your monthly housing cost. The calculator runs the simplified method - 5 dollars per square foot, capped at 300 - and estimates what the actual-expense method would claim from your rent share, naming the better route.
Two gates decide this deduction before any math: the space must be regular AND exclusive work use - a desk in the living room fails - and since 2018, W-2 employees working from home cannot claim it at all. This is a self-employed and freelance deduction, and the calculator says so up front instead of after the audit letter.
How to use
- Measure the dedicated workspace - the part that is truly office.
- Enter monthly rent or housing cost for the actual-method estimate.
- Compare both methods; keep receipts only if actual wins.
Frequently asked questions
How does the simplified home office deduction work?
Five dollars per square foot of dedicated office space, capped at 300 square feet - up to 1,500 dollars, no receipts required. The calculator runs it against your actual expense share so the choice is a number, not a guess.
Can I claim a home office as a W-2 employee?
No - the 2017 tax reform suspended unreimbursed employee expenses. The deduction lives on for the self-employed, freelancers and side businesses; employees get nothing even with a perfect home office.
What does exclusive use actually mean?
The space works only as an office: a spare room with a desk passes, the kitchen table you clear at dinner fails, and a guest room with a treadmill corner fails the strict version. It is the gate audits test first.
Is the simplified or actual method better?
Simplified wins for small spaces and modest rents; actual wins when the office share of real rent, utilities and insurance exceeds 5 dollars a foot - which happens fast above 200 square feet in high-rent cities. The calculator prices both.