How to Maximize Your Home Office Deduction (Legally!)

Working from home offers flexibility—and potential tax savings. If you meet IRS criteria, you can claim a home office deduction, reducing your taxable income.

There are two ways to calculate the deduction: the simplified method (a flat $5 per square foot) or the regular method (based on actual expenses like utilities, insurance, and depreciation). To qualify, the space must be used regularly and exclusively for business purposes. Mixing personal use can disqualify your claim.

By understanding the rules and keeping good records, you can safely take advantage of this valuable deduction without raising audit risks.