When it comes to taking a home office deduction on your annual taxes, there are two ways to do it—a simplified home office deduction or a regular deduction.
- With the simplified option, you use the square footage of your home office space (up to 300 square feet) and multiply it by $5 per square foot for a deduction of up to $1,500.
- With regular method, you use precise calculations that allow you to deduct expenses such as mortgage interest, insurance, utilities, taxes, repairs and more.
So, the question becomes, do you qualify to take a home office deduction? If so, which one should you use? Let’s dive in. [Read more…] about Claiming a Simplified Home Office Deduction During COVID-19