Can I Claim Home Office Deduction as a Business Expense in United States?
Yes — US self-employed people can claim the home office deduction using either the simplified method ($5/sq ft up to 300 sq ft = $1,500 max) or the regular method (actual expenses × business-use percentage). Employees cannot claim home office under TCJA (2018–2025).
What Internal Revenue Service (IRS) says
IRS Section 280A allows a home office deduction if the space is used regularly and exclusively for business. Simplified method (Rev. Proc. 2013-13): $5 per square foot up to 300 sq ft. Regular method: actual costs (utilities, insurance, depreciation, mortgage interest or rent) × business %.
When you can claim
- Self-employed (Schedule C) using a dedicated home office area regularly and exclusively
- S-corp owner-employee under an Accountable Plan reimbursement
- Single-member LLC owner taking the deduction on Schedule C
- Storage of inventory or product samples (separate test, no exclusivity required)
When you cannot claim
- W-2 employees (TCJA suspended employee unreimbursed expense deduction through 2025)
- Space used for both business and personal purposes (fails exclusivity test)
- Hotel or temporary space
- Home office used only occasionally
Good to know
Pro tip: S-corp owner-employees should use an Accountable Plan to reimburse home office expenses tax-free from the corporation, rather than try to deduct on Schedule A (which doesn't work post-TCJA).
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