Utility expenses for home office

[hollydaniel718]

When entering total expenses for utilities, am I entering an amount for the whole year or one month?

[Melaine · Accepted solution]

For the entire year, if you had the home business for the entire year.  Example; if your electric bill was $100 each month, that would be $1,200 for the year.  If your office uses 15% (office square footage is 150 and your home total square footage is 1000, then 150/1000 = 0.15 X 100 = 15%) of your home, then you will deduct 15% of $1200 and you will be able to claim $180, you will do this for all of your home expenses for the year, not only utilities.  You can also use the Simplified Square Footage method which allows you to multiply the square footage of your office by $5.00 and use that total as your deduction.  Example; home square footage is 150, (150 X $5 = $750), $750 is the deduction you would claim. Please see Turbo Tax The Home Office Deduction for more information on home office deductions to help you determine the best to use in your circumstance.