Simplified method worksheet

What is your question about the Home Office Worksheet?   

 

Beginning with 2013 tax returns, the IRS began offering a simplified option for claiming the deduction. This new method uses a prescribed rate multiplied by the allowable square footage used in the home.

 

• For 2021, the prescribed rate is $5 per square foot with a maximum of 300 square feet.
• If the office measures 150 square feet, for example, then the deduction would be $750 (150 x $5).
• The space must still be dedicated to business activities.

With either method, the qualification for the home office deduction is determined each year. Your eligibility may change from one year to the next.   Finally, please note that only certain expenses such as rent, mortgage interest and property taxes qualify for the deduction, and the deduction is limited to $10,000.

 

The simplified method can make it easier for you to claim the deduction but might not provide you with the biggest deduction.  TurboTax makes it easy to determine if you qualify and how much you can write off by asking you simple questions about your unique tax situation.

 

See How do I calculate the home office tax deduction? if you want to know more about the deduction.   But know that TurboTax will do those calculations for you.