Home Office Tax Deduction Calculator
Calculate your home office tax deduction using either the simplified method or actual expense method. Find out which option saves you more money.
Simplified Method
$5 per square foot, up to 300 square feet maximum ($1,500 max deduction)
Advantages
- No record-keeping of home expenses required
- Simple calculation - just measure your office
- Faster tax preparation
Simplified Method
$750
Annual Deduction
Estimated Tax Savings
$225
Based on 30% tax rate
Method Comparison
Simplified Method
$750
150 sq ft × $5
Tax Savings: ~$225
Actual Expense Method
$3,760
10.0% of home expenses
Tax Savings: ~$1,128
Actual Method May Be Better
The actual expense method could save you $3,010 more than the simplified method, but requires detailed record-keeping of all home expenses.
Qualification Requirements
- Exclusive Use: Area must be used ONLY for business
- Regular Use: Area must be used regularly for business
- Principal Place: Your home office is your main place of business
What This Calculator Includes
Simplified Method
$5/sq ft calculation
Actual Expenses
Detailed breakdown
Method Comparison
Side-by-side results
Tax Savings
Estimated savings
Why Use This Calculator?
Maximize Deductions
Find the method that gives you the highest tax deduction
Compare Methods
See both simplified and actual expense calculations side-by-side
Save Time
Quick calculations without complex spreadsheets
Official References
This calculator is based on current IRS home office deduction rules:
- IRS Home Office Deduction
Official guidance on qualifying for the deduction
- IRS Publication 587
Business Use of Your Home (Including Use by Daycare Providers)
- Form 8829
Expenses for Business Use of Your Home
This calculator provides estimates only. Consult a tax professional to ensure you qualify for the home office deduction and to get advice specific to your situation.