Home Office Deduction Explained: How to Write Off Home Office Expenses & Save on Taxes

If you are a business owner that does ANY work from home, and you’re NOT taking the home office deduction... then you’re probably paying more than you have to in taxes to the IRS.

But don’t worry, you’re not alone… More than 2 million people overpay the IRS every year. So if you want to keep doing that, then don’t watch the rest of this video.

But if you want to take the home-office deduction on your tax return, I am going to give you all of the information you need to do this correctly in this video.

All you have to be is a business owner or independent contractor - meaning you receive 1099 income, or in other words, the income you receive is not taxed upon receipt.

If that’s you, and you work from home, then get some ready for some tips to lower that tax payment to the government.

Outline:

What is the Home Office Deduction?: (1:20)
Who Qualifies for the Home Office Deduction?: (1:58)
What Home Expenses Can You Deduct?: (2:38)
How to Calculate Your Home Office Deduction: (5:19)
Recap: (8:16)

[sniptue]

Super Happy I found this Channel1!! You literally explained it with grace and in simple terms! I appreciate you. My anxiety level went from 100% to 1%! Yay! Thank you, thank you!

[therocelectric]

Happy I found your channel, no need to look elsewhere for Tax/accounting info. Looking forward to doing business one day.

[IstealXmas]

Thank you. That was thorough and clear!

[usgenxr]

I LOVE your channel. You guys explain things so CLEARLY - and that takes TALENT! Thank you!!

[tammymitchell]

Very thorough explanation of this awesome small biz owner benefit...Great job!

[estimatingonediscoveringthree]

Can I use a vacant mobile home as a office and shop, and deduct the rent and utilities?

[AqSloan]

Can you be a W2 employee AND self employed to qualify?

[GreenZoneFitness-bgjx]

Isn’t it on the simple a maximum of 300 ft.² times five dollars is $1500 per month that the Business has been using the Square feet henceforth that would be $18, 000 at the end of the year that could be written off on the simple method

[judischneegas]

I am both an employee and starting my own home business

[LooseJointhiphopdance]

This helped me a lot! Thank you. Happy New Year!!

[ShenavianBurns]

Amazing video! You made it so easy to understand...ty sooo much!!

[KordTaylor]

What an excellent video. Really well done. Thank you. 👏🏻

[evemadison]

So can I use my business checking to pay my mortgage? I use my home for my business.

[robertbotta]

Dang this is good. Smart and clear. Rare and appreciated. Thank you.

[silvanaaustin]

As business owners you also get paid W-2 so make sure to mention that .

[alpaulstin]

Question: Is the home office deduction taken on Schedule A or Schedule C(Income from an LLC)?

[zanthiasimpson]

Your example of calculating the home office deduction according to the square footage percentage was confusing.This one and previous videos stated for homeowners: only certain components of the mortgage payment can be deducted (mortgage interest, property tax (included or outside of mortgage payments), etc. --the entire mortgage payment can not be deducted. I understand that monthly rent payments can, but you gave the example of monthly rent/mortgage payments which I believe is incorrect. Although, I think it was a mistake/oversight, this is misleading. Could you please make that correction on this video if it is applicable? If I am mistaken, I apologize! Thanks!

[jaykey]

What if u are an employee but also do a side gig and reason a 1099 form?

[lipsey]

So you gonna make me watch the whole video...good one ...Im in!

[kwameg.]

Thank you. Well explained. I appreciate you.