Self-employed tax estimator
Home office deduction calculator
Compare the IRS simplified square-foot method with an actual-expense estimate before you choose how to report business use of your home.
Best estimate$2,420Actual expense
Inputs
Deduction result
Best method estimate$2,420Actual expense produces the larger current-year estimate.
Simplified method$800160 eligible sq ft at $5 per sq ft, prorated for 12 months.
Actual expense method$2,42010% business use applied to $24,200 of annual home costs.
Calculation notes
Simplified cap
The simplified method uses $5 per square foot and caps the counted home-office area at 300 square feet before any part-year adjustment.
Actual expense comparison
The actual method multiplies annual home costs by the office share of total home square footage, then applies the months used for business.
Income limit
Both estimates are capped at net business income before the home office deduction. Your current inputs are below that cap.