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 · Updated for the 2025 tax year
Common questions
Can I take the home office deduction if I rent my home?
Yes. Renters can claim the home office deduction. Under the regular method, you deduct the business-use percentage of your rent, utilities, renter's insurance, and other housing costs. Under the simplified method, you deduct $5 per square foot regardless of whether you rent or own.
What does the IRS mean by 'exclusive use' for the home office?
Your home office space must be used regularly and exclusively for business. A spare bedroom that is only used as your office qualifies. A kitchen table where you also eat dinner does not. The space does not need to be a separate room — a clearly defined area of a room can qualify — but it cannot serve double duty as personal space.
Judy automatically tracks Home Office Deduction
Connect your business bank account and Judy categorizes Home Office Deduction charges to Home office (simplified method) (Line 30) — no spreadsheets, no manual entry. Get a free 30-day audit first, then subscribe.
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