I work from home 3 days a week for my employer. Can I deduct my home office on my taxes?
Unfortunately, if you are a W-2 employee, you cannot deduct home office expenses on your federal taxes even if you work from home full-time. The Tax Cuts and Jobs Act of 2017 eliminated the home office deduction for employees through 2025, and it was extended. This applies regardless of whether your employer requires you to work from home or if it is your choice. However, if you are self-employed, a freelancer, or an independent contractor (receiving 1099 income), you absolutely can take the home office deduction. There are two methods. The simplified method lets you deduct $5 per square foot of your dedicated home office up to 300 square feet, for a maximum deduction of $1,500. The regular method requires you to calculate the actual percentage of your home used for business and deduct that percentage of your mortgage/rent, utilities, insurance, repairs, and depreciation. The regular method takes more recordkeeping but often produces a larger deduction, especially if your home office is large. Some states like New York and California do still allow W-2 employees to deduct unreimbursed employee expenses on their state returns, so check your state rules as well.
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