Remote Work Tax Loophole Calculator

Estimate the home office deduction for a home workspace under both IRS methods. This is the real, legal deduction sometimes nicknamed a “remote work tax loophole” — not a hidden trick, and it only applies to certain filers (see below).

Your situation

I'm self-employed, a freelancer, or file a 1099 (Schedule C)

Office square footage

Total home square footage

Annual indirect home costs ($ — rent or mortgage interest, property tax, utilities, insurance, repairs)

Annual office-only costs ($ — e.g. repainting just that room)

Result

Fill in your workspace details and press Calculate.

Two ways to calculate it

The simplified method pays $5 per square foot of office space, capped at 300 sq ft ($1,500/year) — no receipts needed. The regular method multiplies the share of your home the office occupies by your actual indirect costs, plus 100% of costs that apply only to the office — often bigger for a large office in an expensive home, but it requires records. This calculator shows both and highlights the larger one.

Since the 2017 Tax Cuts and Jobs Act, W-2 employees generally cannot claim a home office deduction on their federal return through 2025, even with a legitimate work-from-home setup — only the self-employed, freelancers, and other Schedule C filers can. Rules can change and some states differ from federal law, so confirm your situation with a tax professional; this tool is not tax advice.