US eligibility rules — whether you're allowed to claim it. (For the dollar figure, use the home office deduction calculator.)
Self-employed vs employee:
- Self-employed (Schedule C — freelancer, contractor, sole proprietor, single-member LLC): can qualify if the space meets the IRS tests.
- W-2 employee working remotely: generally cannot. The Tax Cuts and Jobs Act suspended the deduction for unreimbursed employee business expenses for tax years 2018 through 2025 (IRS Pub 529). Working from home full time doesn't change this — ask your employer about an accountable-plan reimbursement instead. Check current-year rules for what happens after 2025.
The tests (self-employed):
- Exclusive use — the space is used only for business. A guest-room/office generally fails; the kitchen table you also eat at fails. The tested unit is the space, not the whole room, so a dedicated desk corner can qualify. Limited exceptions: storage of inventory/product samples, and qualified daycare.
- Regular use — used for business on a continuing basis.
- Principal place of business — or a place to meet clients in the normal course of business, or a separate structure. A home office also qualifies if used exclusively and regularly for administrative or management activities with no other fixed location for that work — so a contractor who works on-site but does all scheduling/invoicing from a home desk can qualify (IRS Pub 587; §280A(c)).
Two methods:
- Simplified: $5 per square foot up to 300 sq ft = $1,500 max, no expense tracking (Rev. Proc. 2013-13).
- Regular (actual): business-use % of actual home costs (rent/mortgage interest, utilities, insurance, repairs, depreciation), via Form 8829. Often larger; more paperwork. Renters qualify — rent is one of the allocated costs.
How ExpenseBot helps: captures the utility/insurance/rent bills that feed the regular method into a Google Sheet you own. It does not measure square footage or decide the business-use percentage.
Full guide: Is a Home Office Tax Deductible?. Estimates — confirm with your tax professional.