If you are a W-2 worker, you can’t take the home office deduction for 2023. However, independent contractors with income reported via 1099-NEC may qualify. Your home office must meet specific guidelines to qualify for the deduction.
Certain expenses taxpayers can deduct, may include mortgage interest, insurance, utilities, repairs, maintenance, depreciation and rent.
Taxpayers who qualify may choose one of two methods to calculate their home office expense deduction:
The simplified option has a rate of $5 a square foot for business use of the home. The maximum size for this option is 300 square feet, equivalent to $1,500.
When using the regular method, deductions for a home office are based on the percentage of the home devoted to business use.
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