Estimate a home office deduction so you can see whether working from home may lower your taxes.
Who this is for
Self-employed people and business owners checking whether a home office deduction could be worth it.
What to type in
Your office size, home size, and yearly home costs.
Start with the assumptions, then use the interpretation below to compare tradeoffs without bouncing between sections.
Start with the size of the office space you use for work, then add your home costs.
Use these inputs as a quick setup row. The answer and visual breakdown sit below so you do not lose context.
Electric, gas, water, internet.
Deduction choice
Simplified gives $1,000.00 and regular gives $3,106.67.
Your workspace uses about 13.3% of the home.
The simplified method is easier. The regular method can be larger when home expenses are high.
This only works when the space qualifies as a dedicated business-use area.
Use the better method as a starting point, then confirm the eligibility rules before filing.
Keep records for square footage and home expenses if you plan to use the regular method.
Results
Relative comparison of your main outputs
Simplified deduction
$1,000.00
Regular deduction
$3,106.67
Home-use percentage
13.3%
Simplified deduction
$1,000.00
Regular deduction
$3,106.67
Home-use percentage
13.3%
Best method
regular
Use this if you want to understand how the calculator works, not just plug in numbers.
Step 1
Enter your office and total home square footage.
Step 2
Enter annual rent, utilities, insurance, and repair costs.
Step 3
Compare simplified ($5/sqft capped at 300 sqft) vs regular method.
Step 4
Review which method produces the larger deduction.
These cover the assumptions, tradeoffs, and edge cases behind the calculator.
Use the calculator for the math, then use these guides to make the decision with more confidence.
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