Work-From-Home Tax Write-Offs: What You Can and Can’t Deduct

Working from home can save you money on commuting expenses, but it can also help save you money on your taxes, too. If you’re self-employed and use part of your home regularly and exclusively for business, you may qualify for home office deductions. W-2 employees, however, generally can’t claim these tax write-offs under the current law.

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Quick Take: Can You Claim Work-From-Home Tax Write-Offs?

You may qualify for work-from-home tax deductions if you meet these criteria:

• You’re self-employed: Freelancers, independent contractors, sole proprietors and gig workers are all eligible.

• You use a dedicated space regularly and exclusively for business: You can’t deduct expenses for shared-use areas.

• Your home office is your principal place of business: This is where you conduct most of your business activities.

• You maintain clear documentation: You’ll need detailed documents, including receipts and the space measurements of your home office.

Work-From-Home Tax Write-Offs: At a Glance

Some home expenses are completely deductible when you file your taxes. Others, however, may only be partially deductible, or may not qualify for the deduction at all. Here’s a breakdown:

What Counts as a Qualifying Home Office?

The IRS has specific requirements for what qualifies as a deductible home office:

• Regular and exclusive use: The space must be used consistently for your business’s purposes and nothing else. A spare bedroom that you’ve converted to a home office qualifies, for example, but your kitchen table does not — even if that’s where you take work calls.

• Principal place of business: Your office must be where you conduct substantial work activities, though it doesn’t have to be the only place you work. A plumber, for example, does most of their work in the field, but could qualify for the home office deduction if they have a home office where they handle the administrative tasks.

• Dedicated space: This must be a space that’s set aside for work. It doesn’t necessarily have to be a separate room, but it must be identifiable and only used for business purposes.

How Work-From-Home Tax Write-Offs Actually Work

When you’re claiming business expenses on your tax return, it’s important to get it right. Some expenses are fully deductible, meaning you can claim their full value as a business expense. Examples include:

• Office supplies: Pens, paper, postage and ink

• Office equipment and furniture: Computers, desks, chairs, bookshelves and printers

• Direct repairs to the home office: Such as replacing a broken ceiling fan or repairing your office’s broken window

Other expenses are partially deductible, based on either how often you use the product or service for business use, or based on the space of your home office compared to the rest of the home. For example, you can partially deduct:

• General home repairs: You can deduct a percentage of eligible general home repairs — such as a new AC unit or getting a new roof — based on the percentage of your home office compared to the home’s overall square footage.

• Depreciation: Homeowners can partially deduct depreciation, based on the square footage of the office compared to the home’s overall square footage.

• Rent or mortgage interest: Partially deduct mortgage interest or rent, based on the square footage of the office compared to the home’s overall square footage.

• Utilities: You can partially deduct utility costs like oil, electricity and water, based on the square footage of the office compared to the home’s overall square footage.

• Internet: You can partially deduct services like internet based on your actual business use compared to personal use.

What You Can’t Deduct When Working From Home

There are certain home expenses you can’t deduct when filing your taxes. These include:

• Lawn care and landscaping: These are considered personal expenses and do not impact the functionality of your home office.

• General home improvements: If you get a kitchen remodel or flooring in non-office areas, these do not qualify.

• Personal use portions: You can’t deduct your full internet bill if your whole family uses it regularly. If an estimated 15% of the internet is used for business purposes, you can deduct 15% of the bill.

• First phone line: You can’t deduct your home’s first landline or the first cell phone line if it’s also used for personal use. You can deduct business use of additional lines, however.

How To Calculate Work-From-Home Tax Write-Offs

You have two options for calculating your home office deduction: the simplified method or the actual expense method.

Simplified Method

To use the simplified method:

• Multiply your office square footage — up to 300 feet — by $5.

• There’s a maximum deduction of $1,500 per year.

Keep in mind, there’s no depreciation or tracking of actual expenses required. As a result, this method is best for small offices with limited expenses and those who want minimal recordkeeping responsibilities.

Actual Expense Method

The actual expense is more complicated and requires more involved recordkeeping, but may increase your deduction in some cases. Here’s how to use it:

• Calculate the percentage of your home used for business by dividing your office square footage by your home’s total square footage.

• Apply that percentage to eligible expenses like rent, mortgage interest, utilities and general home repairs.

• Track and document expenses and home depreciation throughout the year.

• You may also have some fully eligible expenses, such as office furniture or supplies.

This works best for large home offices and those with substantial expenses who want to maximize deductions and potentially boost their refund.

How To Claim Work-From-Home Tax Write-Offs

Want to claim work-from-home tax write-offs? You can follow these steps:

• Calculate your deduction: Use either the simplified or actual expense method to determine your deduction.

• Complete IRS Form 8829, if applicable: This form walks you through the calculation if you’re using the actual expense method.

• File Schedule C (Form 1040): Report your business income and expenses, including your home office deduction.

• Maintain detailed records: Keep receipts, bills, mortgage statements, photos of your dedicated workspace and measurements of your office space for at least three years.

Tips To Maximize Write-Offs — Without Raising Red Flags

Finding the balance between maximizing write-offs and not raising red flags for the IRS is important. Here are some tips that can help:

• Keep your office exclusive to business use: Never use your office space for personal activities, as this is one of the most common reasons deductions are disallowed.

• Measure accurately: Document your home office and square footage with precision. Sketches, floor plans or photos can help verify your measurements.

• Be realistic about business use percentages: Claiming 100% business use of internet or phone when you live alone may even raise questions, since you likely use it for personal use, too.

• Consider the simplified method: If your actual expenses yield a similar deduction, the simplified method reduces audit risk and recordkeeping burden.

• Consult a tax professional: If you’re unsure about what qualifies, get professional guidance.

Key Takeaways

• Self-employed individuals can deduct home office expenses, while purely W-2 employees generally cannot.

• Your office must be used regularly and exclusively for business, so shared spaces don’t qualify.

• Only deduct the business percentage of shared expenses for costs like internet and home maintenance.

• Proper documentation is essential, so keep detailed records of measurements, expenses and business use to support your deduction.

• When in doubt, err on the side of caution. Conservative deductions backed by solid documentation are better than aggressive claims that could lead to penalties or additional taxes owed.

Work-From-Home Tax Write Offs: FAQ

If you’re looking for more information about taking work-from-home expenses, these answers can help provide guidance.

Can W-2 employees deduct work-from-home expenses?

No, W-2 employees cannot deduct work-from-home expenses unless they also have an eligible side business or side gig. Only self-employed individuals can deduct home office expenses.

Can I claim write-offs for a side gig?

Yes, you can claim write-offs for a side gig. However, you can only do so if you meet the standard requirements for home office deductions, including having a space you use regularly and exclusively for the side gig.

Keep in mind that the deduction only applies to your 1099 income and not your W-2 wages.

Do renters qualify for work-from-home tax write-offs?

Yes, renters absolutely qualify for home office deductions if they meet the eligibility requirements. Instead of deducting mortgage interest and depreciation, renters can deduct a portion of their rent payments.

Is the home office deduction worth it?

For many self-employed individuals, yes, the home office deduction is worth claiming. Depending on your business income and expenses, you could save hundreds of dollars in taxes annually.

However, you need to consider your unique circumstances, including whether the tax savings are worth the recordkeeping requirements and if you plan to sell your home soon, as the deduction can affect capital gains calculations.

Sources

• IRS. 2025. "Simplified option for home office deduction."

• IRS. 2024. "Publication 587 (2024), Business Use of Your Home.

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