Home Office Deduction Guide (2026) - Remote Worker Tax Benefits
Home office deduction guide: regular and exclusive use, calculation methods (regular vs simplified), documentation requirements.
Summary
Home office deduction: regular and exclusive use required. Regular method: actual expenses. Simplified method: $5/sq ft up to 300 sq ft. Self-employed only, not W-2 employees.
Key Steps
- 1Eligibility: self-employed, regular and exclusive use of space for business.
- 2Regular method: deduct portion of mortgage interest, utilities, insurance, repairs.
- 3Simplified method: $5 per square foot, max 300 sq ft = $1,500 deduction.
- 4Documentation: measure space, photos of office, business use evidence.
- 5Not for W-2: employees working from home cannot deduct home office.
- 6Depreciation: regular method includes depreciation on home portion.