Taxorly AI Tax Advisor
Answered June 4, 2026
<b>test_bold</b> As a self-employed individual, you can deduct a portion of your home expenses as a business expense on your tax return. To qualify, you must use a dedicated space in your home regularly and exclusively for business. Let's say you use 10% of your 1,000 sq. ft. home for business, which is 100 sq. ft. If your annual rent or mortgage interest is $15,000, and utilities are $2,000, your total home expenses are $17,000. You can deduct 10% of this amount, which is $1,700. Alternatively, you can use the simplified option, which allows you to deduct $5 per sq. ft. of home office space, up to a maximum of $1,500. Try our Home Office Deduction Calculator at taxorly.com/home-office-calculator.
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