Employees cannot deduct home office expenses after TCJA (2018-2025, now permanent under OBBBA). The home office deduction for W-2 employees was eliminated by the Tax Cuts and Jobs Act as a miscellaneous itemized deduction. Only self-employed individuals, sole proprietors (Schedule C), farmers (Schedule F), and partners with unreimbursed partnership expenses may claim this deduction. If you are a W-2 employee, this calculator does not apply to you. IRC §67(g).
Must be used exclusively and regularly for business. IRC §280A(c)(1).
Total area of your home (all floors)
Schedule C or F net income before home office deduction
Disallowed deductions carried from prior years (actual method only)
2
Actual Expenses (for Actual Method)
From Form 1098. Or annual rent if renting.
Annual property taxes paid
Annual homeowner's or renter's insurance
Electric, gas, water, internet (annual)
General home maintenance (indirect). Direct office repairs = 100%.
Fair market value (or cost basis if lower). Land value excluded. IRC §168.
Expenses solely for the office space: paint, shelving, office cleaning. 100% deductible.
Excluded from depreciation. Estimate: typically 10-30% of property value.
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