How to Calculate Home Office Tax Deduction
What is Home Office Tax Deduction?
If you work from home for a business, you can deduct a portion of home running costs proportional to the space used exclusively for work.
Formula
Step-by-Step Guide
- 1Regular method: home office % x (rent/mortgage + utilities + insurance)
- 2Home office % = Office size / Total home size x 100
- 3IRS simplified method: $5 x square footage (maximum $1,500)
Worked Examples
Frequently Asked Questions
What is Home Office Deduction?
If you work from home for a business, you can deduct a portion of home running costs proportional to the space used exclusively for work. Use this calculator for accurate, instant results.
How accurate is the Home Office Deduction calculator?
The calculator uses the standard published formula for home office deduction. Results are accurate to the precision of the inputs you provide. For financial, medical, or legal decisions, always verify with a qualified professional.
What units does the Home Office Deduction calculator use?
This calculator works with inches, dollars, percentages. You can enter values in the units shown — the calculator handles all conversions internally.
What formula does the Home Office Deduction calculator use?
The core formula is: Home office % = Office size / Total home size x 100. Each step in the calculation is shown so you can verify the result manually.
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