# How to Calculate a Home Office Tax Deduction

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Working from home can be a popular option when you're starting your own business or if you don't need to physically go into an office every day. Not only can it save you time and commuting costs, but if you qualify, your home office might save you some additional dollars at tax time.

This deduction is only available to certain self-employed workers. With the Tax Cut and Jobs Act of 2017, employers are no longer to deduct business expenses that aren't reimbursed by employers. So, you'll want to make sure you know how to calculate your home office deduction correctly.

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Consider also:Schedule A: Instructions on How to Itemize Deductions

## Home Office Deduction Eligibility

Consider also:Guide to Home Office Deductions

## Specific Qualifying Expenses

Learning how to calculate home office tax deductions can be complicated and confusing. The Internal Revenue Service categorizes home expenses into costs that are directly related to your business, indirectly related and unrelated.

Direct costs are those that are only for your home office, such as redoing the wallpaper in the room you use for your office. These are fully deductible. On the other hand, indirect costs are for the general upkeep of your house, such as mortgage interest, insurance, utilities and depreciation, and the portion attributable to your home office is deductible.

This deduction is only available to certain self-employed workers.

Expenses from parts of your home not used for business can't be deducted at all. For example, if you have landscaping done for your backyard, that's most likely unrelated to your business, so you can't deduct any of those costs. Work with a tax professional to learn how to calculate home office deductions.

To figure your deduction, you first have to figure the percentage of your home that you use for business purposes. You can either use the square footage method or, if all the rooms in your home are approximately equal in size, you can divide the number of rooms used for business by the total number of rooms.

Consider also: Home Office Deduction: Actual Expense Method