Home Office & Mileage Deduction Calculator | Free

Tax year

Home office method

Simplified ($5/sq ft)

Actual expenses

Office square footage

Must be used regularly and exclusively for business.

Business miles this year

Client visits, job sites, supply runs — not your regular commute.

Your marginal federal tax bracket

This is Schedule C income (deductions also reduce SE tax)

Getting the home office deduction right

The home office deduction is legitimate, common, and — done properly — not the audit magnet people fear. The requirement that matters is regular and exclusive use: a dedicated room or clearly defined space used only for the business. A kitchen table you also eat at doesn't qualify; a spare bedroom converted to an office does.

The simplified method trades accuracy for ease: $5 per square foot, capped at 300 sq ft, no receipts. The actual method applies your business-use percentage to real housing costs and usually produces a bigger number for renters with high rent or anyone with a large office — but homeowners should know that depreciation claimed under the actual method can be recaptured when the house sells.

Mileage is the other everyday deduction the self-employed leave on the table. At the current standard rate, 10,000 legitimate business miles is a four-figure deduction — but only with a contemporaneous log. An app or a simple notebook both work; reconstructing it in March does not.

Home Office & Mileage Questions

Who qualifies for the home office deduction?

Self-employed people (Schedule C, and certain partners and farmers) who use part of their home regularly and exclusively as their principal place of business. W-2 employees cannot claim it on their federal return under current law, even when working from home.

Simplified vs actual method — which is better?

The simplified method is $5 per square foot up to 300 sq ft (max $1,500) with no receipts to track. The actual method deducts the business-use percentage of real home costs — rent or mortgage interest, utilities, insurance, repairs — and usually wins for larger offices or higher housing costs, at the price of more record-keeping and possible depreciation recapture for homeowners.

What miles count as business mileage?

Driving between work sites, to client meetings, the bank, or the supply store counts. Ordinary commuting from home to a regular workplace does not — but if your home office is your principal place of business, trips from home to client sites generally do count. Keep a contemporaneous mileage log; the IRS routinely disallows reconstructed logs.

Can I claim both the home office deduction and mileage?

Yes — they're separate deductions and often work together: a qualifying home office makes more of your driving deductible because trips start from your principal place of business.

Estimates only — not tax advice. This tool approximates federal savings using your selected bracket and simplified SE-tax treatment. It does not model the gross-income limit on the actual method, depreciation, or state taxes. Confirm eligibility and amounts with a licensed CPA.

Deductions Are Found, Not Wished For

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