Enter qualified square feet to calculate.
START HERE
Get the simplified answer first. Add actual expenses only if you want the comparison.
The simplified option remains one step. The actual-expense estimate stays optional so the tool does not become harder for users who only need the $5-per-square-foot calculation.
STEP 2 · RESULT
Your better estimated method
Compare the deduction first, then the optional tax effect.
See simplified-method detailsSquare-foot cap, monthly averaging and income limitOpen +
| Allowable simplified space per qualifying month | 0 |
|---|---|
| Average monthly allowable square feet | 0 |
| Qualifying period | 12 qualifying months |
| Simplified amount before income limit | $0 |
| Selected-method amount limited by income | $0 |
Add income to test the limit
How the actual estimate was built
| Business-use percentage | — |
|---|---|
| Business share of recurring indirect costs | $0 |
| Direct office expenses entered | $0 |
| Business-use depreciation entered | $0 |
| Actual estimate before income limit | $0 |
| Actual amount limited by modeled income | $0 |
Estimated tax reduction using the selected method: $0
| Simplified-method estimated tax reduction | $0 |
|---|---|
| Actual-method estimated tax reduction | — |
| Federal income tax reduction | $0 |
| Self-employment tax reduction | $0 |
| State income tax reduction | $0 |
How the simplified home-office method works
The IRS simplified option generally uses $5 per square foot of qualified home-office space, with allowable square footage capped at 300 square feet. For a full year, that produces a maximum simplified amount of $1,500 before applying the business-income limitation.
How the actual-expense estimate works here
The regular method allocates expenses between business and personal use. This calculator estimates business use from qualified office square footage divided by total home square footage, applies that percentage to the recurring indirect home costs you enter, prorates those recurring costs for qualifying months, then adds direct office expenses and any business-use depreciation amount you enter.
The IRS actual method can be more complex than this planning estimate. Schedule C filers generally use Form 8829, and depreciation, otherwise-deductible home costs, carryovers and the deduction limit have additional rules.
Can I choose a different method each year?
Yes. IRS guidance allows taxpayers to choose the simplified option or actual expenses for a tax year, but once the simplified election is made on a timely filed original return for that year, it cannot later be changed for that same year. A later year can use the other method.
What if I used the office for only part of the year?
For the simplified method, the calculator uses average monthly allowable square footage. A month with fewer than 15 days of qualified business use counts as zero. For the actual estimate, recurring indirect costs are prorated by the qualifying-month fraction; direct expenses and depreciation inputs should already relate to the qualifying period.
Does any home workspace qualify?
No. The method comparison does not change the qualification rules. In general, a portion of the home must be used exclusively and regularly for business, and the business-use test must be met. Certain storage and daycare situations have special rules that this calculator does not model.