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

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.

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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)

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50 Comments

  1. Orlando Velez on October 20, 2022 at 5:55 am

    I have a question, and I apologize for my ignorance. If I have a full time job and a side business (home workshop), would I be considered a qualifying tax payer?

  2. Tency Flips on October 20, 2022 at 5:57 am

    What if you just started a business but also work as an employee until bussiness starts going better?

  3. Valtiel on October 20, 2022 at 5:58 am

    Great video! What about if you have multiple jobs — one that you’re considered an employee and get a W-2 and another job that you user your home office for? Does this make someone qualify or can you not be an “employee” at all, anywhere, and must be full time business a owner/independent contractor?

  4. Christopher Conkright on October 20, 2022 at 5:58 am

    What if you are both I get W2 but I also run a business separate from my job? Does that just screw me out of it?

  5. Robert Botta on October 20, 2022 at 6:00 am

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

  6. Vik on October 20, 2022 at 6:00 am

    What is you are an employee and own a business that you run from home? Also, in order to deduct, do you have to pay those bills through your business account?

  7. Kahokian on October 20, 2022 at 6:00 am

    What if I work full time and get a w2 but i also have a room dedicated solely to my online ebay reselling which supplements my income?

  8. Christian on October 20, 2022 at 6:04 am

    You made an example of a 3000sqft home (living built area I assume)…What what if the whole lot is $8000 sqft and I use alll the back yard for business purposes? …What if I DONT use the open space or back yard to work, then the calculation wouldn’t be based on 3000 sqft but 8000 sqft and the deduction would be a lot less in your example?….In conclusion does IRS consider the whole lot or just the built area?

  9. Reality & Me on October 20, 2022 at 6:04 am

    Can you get these deductions if you use a virtual office?

  10. Dorrie - on October 20, 2022 at 6:06 am

    Thank you!

  11. Krystal Mota on October 20, 2022 at 6:08 am

    I’m so glad I found this account! you guys should hop on tiktok for the younger folks

  12. Deb wright on October 20, 2022 at 6:08 am

    Thank you.

  13. Chuck on October 20, 2022 at 6:10 am

    mortgage interest or mortgage (Principle + interest)???

  14. Jason K on October 20, 2022 at 6:12 am

    Hahaa! TC is the man.

  15. Loose Joint on October 20, 2022 at 6:14 am

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

  16. aaron puckett on October 20, 2022 at 6:15 am

    Question- can you write off the entire mortgage note if you have a house cleaning business and you use your personal house as a model house for your business to show potential clients the quality of your work?

  17. Dissent on October 20, 2022 at 6:16 am

    How would this work if my home was open concept

  18. J Miller on October 20, 2022 at 6:19 am

    terrific info!

  19. Paul Young on October 20, 2022 at 6:21 am

    Could I use this deduction on a 2 Bedroom Apartment ? Where the second bedroom would be completely for a Home Office?

  20. Noah Riding on October 20, 2022 at 6:21 am

    For the home office deduction, I can’t find anywhere talking about if you can still qualify for the home office deduction if you either live with relatives (but really work from home), or if it matters if you are really paying rent to those same relatives?

    Can you claim this home office deduction if you aren’t really paying rent (but are really working from home.)

  21. FlaschDJ on October 20, 2022 at 6:22 am

    Good

  22. Rakim Mason on October 20, 2022 at 6:24 am

    FREE SAUCE‼️🙌🏾

  23. angle5070 on October 20, 2022 at 6:25 am

    In the example you gave at the end of the video, you deducted part of the mortgage and not just the mortgage interest. Ij other parts of the video however you specified that mortgage interest cam be deducted (not principal itself).Is that correct and is it allowable? Thank yoi

  24. Medusa's Loc Oasis At Home on October 20, 2022 at 6:26 am

    Yoooo in a minute… the irs will owe me money 💰 💎

  25. thejetpilot on October 20, 2022 at 6:27 am

    What about if I am a W2 Employee and then open an LLC while still employed. I have a side hustle – how will this work?

  26. Joli Moli on October 20, 2022 at 6:27 am

    In addition to the mortgage insurance, HOA, utilities, etc, would the office improvements like ceiling fan installation and flooring be a deductible expense?

  27. Tonice Mon’a on October 20, 2022 at 6:28 am

    I do YouTube from home & operate a music studio at home. Can I use that ?

  28. Chris Goodwin on October 20, 2022 at 6:29 am

    Clear presentation, thank you.

  29. EstimatingONE DiscoveringTHREE on October 20, 2022 at 6:31 am

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

  30. Jeffrey Kiu on October 20, 2022 at 6:31 am

    Great info! Thanks so much for the video

  31. Mind of a Mystic Tarot on October 20, 2022 at 6:32 am

    What if the you work and own a business do I still qualify?

  32. Michelle Marie on October 20, 2022 at 6:33 am

    Do people who work from home but work for someone else’s company not their own business also qualify for this deduction?

  33. Meepmeep on October 20, 2022 at 6:33 am

    Hey quick question. So I’m filing my taxes through turbo tax and if I use the same office space for 3 separate businesses, do I claim the entire office space for one business, divide that space into the three businesses or can I claim that entire office space for all three businesses?

    Thanks in advance!

  34. IN75 on October 20, 2022 at 6:34 am

    thank you so much great video!

  35. Brooke Joiner on October 20, 2022 at 6:34 am

    Don’t we already write off mortgage interest? How would that reconcile with this?
    Are all insurances and expenses on the home part of the deduction calculation?

  36. Likity Split Lickity Dickity on October 20, 2022 at 6:36 am

    Best damn video ever 😂

  37. Russell lucas on October 20, 2022 at 6:36 am

    Great job!!

  38. Cranky James on October 20, 2022 at 6:38 am

    Ok so home office credit isn’t for people who are w4 employees?

  39. Eve Madison on October 20, 2022 at 6:39 am

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

  40. JFunTime & Chloe on October 20, 2022 at 6:41 am

    HOA for a house or condo you live in can be added?

  41. admon kako on October 20, 2022 at 6:41 am

    What happends when u sell your house do u pay taxes

  42. Zanthia Simpson on October 20, 2022 at 6:41 am

    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!

  43. Sha C on October 20, 2022 at 6:43 am

    I really wish you guys were taking new clients.

  44. TheRoblove11 on October 20, 2022 at 6:44 am

    Good explanation. But that calculation is wrong though at 7:54. 30,000.00×33 gives you 990,000.00. Did you mean 33% of 30000? You should clarify. Thanks.

  45. mj craftbrew on October 20, 2022 at 6:45 am

    great info, but I wish you went line by line through form 8829 since there seems to be a lot more info needed and not discussed.

  46. A Williams on October 20, 2022 at 6:46 am

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

  47. Teo Borunda on October 20, 2022 at 6:48 am

    I work from home but for a company… Can I still do some sort of tax reduction.

  48. Gary Curtis on October 20, 2022 at 6:49 am

    Excellent video, thank you

  49. General on October 20, 2022 at 6:50 am

    How about if I am an employee and a business owner working from home…would your video explanation applies as well?

  50. Vanessa In Purpose on October 20, 2022 at 6:54 am

    Thanks 😁

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