Taxorly AI Tax Advisor
Answered June 4, 2026
img_xss_test_12345
As a self-employed individual, you can deduct a portion of your home expenses as a business expense on your tax return. For the 2026 tax year, you can use the Simplified Option, which allows you to deduct $5 per square foot of home office space, up to a maximum of $1,500. Alternatively, you can calculate your actual expenses, such as rent or mortgage interest, utilities, and insurance, and deduct the business use percentage. For example, if you use 20% of your 1,000 square foot home as a home office, you can deduct 20% of your total expenses. Let's say your annual mortgage interest is $10,000 and utilities are $2,000, your total deduction would be $2,400 (20% of $12,000). Try our Home Office Deduction Calculator at taxorly.com/home-office-calculator
⚠️ Consult a CPA for personalized advice.