Can I Write Off My House If I Work From Home?
Working from home does not make your house a write-off. Here's who can take a home office deduction and how it's figured.
“Can I legally write off my house if I work from home?”
The short version
- You probably can't write off your entire house.
- The home office deduction is for people with self-employed income or who own a business.
- W-2 employees who work from home used to get it. That's been discontinued at the federal level. Some states still allow something.
- The deduction is the home office square footage divided by the home's total living space, applied to mortgage interest, property taxes, insurance and utilities.
The short answer
Probably not. You can't write off your entire house.
The myth: working from home means a home office deduction
If you're a W-2 employee who works from home, the home office deduction used to be available. It has been discontinued.
Some states still allow an itemized deduction for certain office expenses, but for the most part, the deduction is now limited to business owners.
Who can take it
You can take a home office deduction if you own a business or have self-employment income.
How to calculate it the right way
The deduction is based on how much of your home the office takes up.
Divide the office's square footage by your home's total living space. Apply that percentage to your mortgage interest, property taxes, insurance and utilities.
Frequently asked questions
Can W-2 employees take the home office deduction?
If you are a W-2 earner and you only work from home, they used to allow the home office deduction, but that is now discontinued. Some states still allow an itemized deduction for some office expenses.
Who can claim a home office deduction?
You can write off a potential home office deduction if you have any self-employed income or if you own a business.
How is the home office deduction calculated?
Take the total square footage of the home office and divide it by the total square footage of the entire living space. That percentage applies to things like mortgage interest, property taxes, insurance and utilities.