Is the Home Office Deduction Tax Deductible? Yes — Here's How to Claim It on Schedule C
100%
Deductible
Line 30
Schedule C
Home office (simplified method)
Category
$5/sq ft, up to $1,500/yr
Typical cost
If you work from home as a self-employed individual or single-member LLC, the IRS lets you deduct your home office expenses—and it's 100% deductible. You have two methods: the simplified approach ($5 per square foot) or the actual expense method using Form 8829. Either way, this deduction can significantly reduce your taxable income.
Who qualifies?
You qualify if you're self-employed, a freelancer, or single-member LLC filing Schedule C with a dedicated workspace used regularly and exclusively for business. Employees working from home generally cannot claim this deduction.
How to claim it
- 1 Measure your dedicated home office workspace in square feet (must be used exclusively for business).
- 2 Choose your method: simplified ($5/sq ft, max 300 sq ft = $1,500/yr) or actual expenses (Form 8829, potentially larger deduction).
- 3 Report the deduction on Schedule C, Line 30 (simplified method) or use Form 8829 for actual expenses.
Pro tip
Compare both methods before filing: calculate your actual home office expenses (utilities, rent, depreciation, insurance) on Form 8829—it often yields a larger deduction than the $1,500 simplified cap, especially in higher cost-of-living areas.
Source: IRS Publication 587: Business Use of Your Home
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