Home office calculation method
The simplified option can make home office calculations easier for eligible self-employed workers, but the space still has to meet IRS business-use requirements.
Published by Cadus Labs LLC · Reviewed against the official IRS sources linked below.
Based on IRS simplified option guidance and IRS Publication 587 available in 2026.
The IRS simplified option uses a standard deduction of $5 per square foot of home used for business, with a maximum of 300 square feet.
That means the simplified method is capped at $1,500 for a full year when the qualified business-use area is at least 300 square feet.
The simplified option makes the calculation easier, but it does not change the criteria for who may claim the deduction.
The business space still needs to satisfy the applicable IRS requirements, such as exclusive and regular use unless a specific exception applies.
The simplified method can be useful when a self-employed worker wants a straightforward calculation and has a modest qualifying home office space.
It may also reduce recordkeeping complexity compared with tracking and allocating actual home expenses.
If the qualifying space is large, home costs are high, or direct business-use expenses are significant, the regular method may produce a different result.
Users should compare methods before filing, especially if they have rent, mortgage interest, utilities, insurance, repairs, depreciation, or other home costs that may be relevant.
IRS-backed tax education
Learn how the IRS home office deduction works for self-employed workers, including exclusive and regular use, simplified method, actual expenses, and Form 8829.
Actual expense method
Learn what IRS Form 8829 is used for, how direct and indirect home office expenses work, and how self-employed workers can keep better records.
The IRS simplified option uses $5 per square foot of qualified business use of the home, up to 300 square feet.
IRS Form 8829 instructions say that if more than one home was used for business during the year, the simplified method can be used for only one home.
It can simplify calculation and recordkeeping, but users still need support for the qualified business use and square footage of the home space.