The home office deduction lets you deduct things like mortgage interest, insurance, utilities, repairs, and depreciation for the portion of your home used for business. It's available to homeowners and renters alike.
You may be able to claim the home office deduction if your office is used regularly and exclusively for your business and is your principal place of business. In addition, if you're working at home for an employer, your home office must be for the convenience of your employer – not just you.
This means if your employer lets you telecommute as an option, you can't take the deduction. However, if your employer doesn't have their own office or workplace, forcing you to work from home, you may be able to claim the deduction.
When you enter your home office information in TurboTax, we'll determine if you can claim the deduction and how much the deduction is worth.
If you rent the home you occupy and meet the requirements for business use of the home, you can deduct part of the rent you pay. To figure your deduction, multiply your rent payments by the percentage of your home used for business. If you own your home, you cannot deduct the fair rental value of your home, in this case you would depreciate the portion of your home that pertains to the Home Office.
To enter your Home Office deductions in Turbo Tax, follow these steps:
- Open the software and click on the "Business" tab, then click continue, or "I'll choose what I work on"
- Next, click on the "Home Office Expense" tab under the Business Expense heading
- From here Turbo Tax will guide you through the process of getting these expenses to their proper place on the tax return.
The two screenshots correspond to 1. and 2. above.