Home Office (Simplified Method)

Claim $5 per square foot of dedicated workspace, up to 300 sq ft.

Tax Form

Schedule C, Line 30

Estimated Savings

$300-1,500/year

IRS Reference

Publication 587

Income Level

Just Starting (<$25k)Growing ($25k-$100k)

How It Works

The simplified home office deduction lets you claim $5 per square foot of your dedicated workspace, up to a maximum of 300 square feet ($1,500). This method requires no complex calculations of actual expenses - just measure your space and multiply.

IRS Rules & Requirements

Space must be used regularly and exclusively for business
Maximum deduction is $1,500 (300 sq ft x $5)
Cannot exceed your gross income from the business
Cannot depreciate your home under this method
Can switch between simplified and regular method each year

Real Examples

A streamer with a 150 sq ft dedicated streaming room deducts $750

A YouTuber with a 200 sq ft home studio deducts $1,000

A podcaster with a 100 sq ft recording closet deducts $500

Common Mistakes to Avoid

Using a space that doubles as a guest room (not exclusive use)
Not measuring the space accurately
Claiming more than 300 sq ft under simplified method
Not realizing you can switch to regular method if it saves more

Pro Tip

If your home office expenses (rent, utilities, insurance) would exceed $1,500, consider the regular method instead for a larger deduction.

Related Deductions

🏡

Home Office (Regular Method)

Deduct actual expenses: rent, utilities, insurance, repairs based on office square footage.

📶

Internet & Phone

Business portion of internet and cell phone bills.

🪑

Office Furniture & Set Decor

Desks, chairs, shelving, and background decor for your filming space.

Not sure if you qualify?

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