Office Space
Annual Home Expenses (for Regular Method)
Enter your total annual costs. The calculator will apply your office percentage automatically.
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Home Office Deduction: Two Methods Compared
If you use a dedicated space in your home regularly and exclusively for business, you can deduct a portion of your home expenses. The IRS offers two methods: the simplified method and the regular (actual expenses) method.
Simplified Method
Multiply your office square footage (up to 300 sq ft max) by $5 per square foot. Maximum deduction: $1,500. This method is quick, easy, and requires no expense tracking — just measure your office.
Regular Method
Calculate the percentage of your home used for business (office sq ft ÷ total home sq ft), then apply that percentage to your actual home expenses: rent or mortgage interest, utilities, insurance, repairs, property taxes, and internet. This method usually produces a larger deduction but requires tracking all expenses.
Both methods reduce your self-employment tax and your income tax. See the impact on your total tax bill with our 1099 Income Tax Calculator. For more detail, read our full Home Office Deduction Guide.