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Form 8829 Calculator

Compare the Form 8829 regular home office deduction with the simplified method and pick the bigger one.

Updated November 4, 2026. Free, no sign-up; everything runs in your browser and nothing you type is stored.

Form 8829 home office deduction calculator

Office area (sq ft)Whole home (sq ft)Direct office expenses ($)Yearly utilities, insurance, repairs, rent ($)Mortgage interest and property tax ($)Home's building basis, excluding land ($)Business profit before this deduction ($)

Better choice

–

–Regular method (Form 8829)

–Simplified method ($5 x up to 300 sq ft)

–Business-use percentage

–Depreciation (39 years, full year)

Two ways to deduct a home office

If you use part of your home regularly and exclusively as your main place of business, you can deduct it on Schedule C (IRS Publication 587). Employees can't take this deduction on federal returns.

Regular method (Form 8829): direct office costs (painting the office, for example) in full, plus the business percentage of indirect home costs: rent or mortgage interest, property tax, insurance, utilities, repairs and depreciation of the building over 39 years. The deduction can't create a loss; excess carries forward.
Simplified method: $5 per square foot for up to 300 square feet ($1,500 a year), no Form 8829, no depreciation, no carryforward. Mortgage interest and property tax stay fully deductible on Schedule A if you itemize.

Worked example

A 200 sq ft office in a 2,000 sq ft home is 10% business use. With $300 of direct costs, $7,200 of utilities and insurance, $14,000 of mortgage interest and tax, and a $300,000 building basis, Form 8829 gives about $3,189: $300 + 10% of $21,200 + $769 of depreciation. The simplified method gives $1,000. Form 8829 wins here, but depreciation you claim is taxed (up to 25%) when you sell the home, so the simplified method can still be the better long-run choice for small amounts. Self-employment tax savings from the deduction show up in the self-employment tax estimator.

Common questions

What is Form 8829?

The form for the regular method of the home office deduction on Schedule C.

How much is the simplified home office deduction?

$5 per square foot for up to 300 sq ft, $1,500 a year at most.

Can employees claim the home office deduction?

Not on federal returns; it's for self-employed people.

Sources

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General information, not financial, tax or legal advice. Check important numbers with the official source before acting on them.