cancel
Showing results for
Did you mean:
Highlighted
Intuit

# Square footage: Why it matters for your home office

There are two ways to calculate a home office deduction, and both are based on square footage. Be prepared to measure your space.

## Simplified method

With this method, you measure the area of just your home office or space. If you store inventory, measure that space too. Determine the square footage (length x width) and choose the closest home office size:

• 100 sq ft, or about the size of a small bedroom
• 200 sq ft, or about the size of a large bedroom
• 300 sq ft or more, or about the size of an average living room

The deduction is a flat rate (currently \$5 per square foot) to a maximum of 300 square feet. So if your space is about 100 square feet, your deduction would be \$500.

The simplified method is what we use to calculate your quarterly estimated tax payments. If you're entitled to this deduction, make sure you select a home office size in the Home Office section of the Annual Taxes page. If you don't, the deduction won't be included in your estimates.

## Actual expenses method

With this method, your home office space is a percentage of your home's total square footage. The percentage determines how much of your total home expenses (like rent, utilities, insurance) can be deducted for your home office. Here's an example:

• Your home office space is 132 square feet (11" x 12")
• Your total home square footage is 1,100 square feet