How does the simplified home office deduction work?

Under the IRS simplified option, eligible taxpayers multiply qualified business-use square feet by $5, up to a maximum of 300 square feet.

Does the simplified method remove eligibility rules?

No. The IRS says the simplified option changes the calculation and recordkeeping burden, but it does not change the criteria for who may claim the deduction.

Free home office tool

Home office deduction calculator for self-employed workers

Estimate the simplified home office deduction using IRS guidance, then keep home office records, receipts, expenses, and reports organized in Cadus.

Interactive estimator

Home Office Deduction Calculator

The IRS simplified option uses $5 per square foot of home used for business, with a maximum of 300 square feet.

Qualified office square feetsq ftBusiness gross income$Other business expenses$

Eligible square feet

150 sq ft

Simplified rate

$5 / sq ft

Income limit estimate

$32,000

Estimated deduction

$750

Preliminary amount: $750 before the simplified-method income limit estimate.

Before you rely on it

This calculator covers the simplified method only.

The regular method may produce a different result and requires more detailed records.

The deduction can be limited by business income and other expenses.

What this tool uses

The simplified method uses $5 per square foot, capped at 300 square feet.

The home office area must still meet the regular and exclusive business-use rules.

Employees generally cannot claim this deduction for tax years after 2017.

Best for

Sole proprietors and self-employed workers who use part of their home for business.

Home-based service businesses that want a quick simplified-method estimate.

Business owners comparing home office records with other expense categories.

How to use the estimate

Measure

Enter the square feet used for qualified business use and see the simplified-method cap.

Limit

Compare the preliminary amount with business income after other expenses.

Organize

Keep home office records, receipts, and tax reports ready for accountant review.

Why Cadus helps after the calculator

Estimates are useful, but records win tax season

Cadus helps business owners keep the home office deduction in context with receipts, utilities, software, mileage, income, invoices, and Schedule C summaries.

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Related guides

Learn

Home Office Deduction Guide

Learn how the IRS home office deduction works for self-employed workers, including exclusive and regular use, simplified method, actual expenses, and Form 8829.