Estimate only, not tax advice. Check IRS.gov or a tax professional before you pay.
If you work from home as a freelancer, part of your housing costs may be deductible. The deduction is for the self-employed. Employees working from home can't claim it.
The space must be used regularly and exclusively for your business. A desk in a corner of the living room that's also family space generally doesn't qualify. A spare room used only for work generally does.
$5 per square foot of the business space, up to 300 square feet, so the maximum is $1,500. You don't track actual home expenses and you don't take depreciation. You still claim mortgage interest and property tax in full on Schedule A if you itemize.
Work out the business percentage of your home (office square feet ÷ total square feet) and deduct that share of actual expenses such as rent, utilities, insurance, repairs and depreciation. It takes more records and depreciation is recaptured when you sell, but it can produce a bigger deduction.
With either method the deduction can't be more than the gross income from the business use of your home minus other business expenses. You can switch methods from year to year, but once you file you can't change the method for that year.
Example: a 150 sq ft office under the simplified method gives 150 × $5 = $750 less profit. Subtract it before entering your profit below.
Estimate only, not tax advice. Figures are for tax year 2026 from IRS sources (Form 1040-ES, Rev. Proc. 2025-32 and the pages listed under Sources) and the SSA. Confirm with IRS.gov or a tax professional.
Sources: IRS: Simplified option for home office deduction
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