There are rules about what qualifies as a home office, what qualifies as a deductible expense, and what method should be used to calculate the deduction assuming those rules and qualifications are met. This guide, and the accompanying checklists, from TechRepublic Premium, will help you navigate the twists and turns of those regulations to arrive at a correct, clear, explainable, and defensible home office deduction amount.
From the guide:
Whether as employees of a larger company or as independent contractors forced to fend for themselves amid rampant unemployment, the global COVID-19 pandemic of 2020 has obliged many individuals to work remotely from home offices, kitchen tables, or any other spot in the house where they can get some work done. Under certain conditions, the United States Tax Code allows taxpayers to deduct expenses associated with their designated “home office.” But calculating the deduction can get complicated.
Depending on circumstances of course, the home office deduction, when correctly applied and calculated, can reduce your overall income tax bill significantly. However, when applied incorrectly or haphazardly, it can lead to awkward exchanges with the IRS as you try to explain just how you arrived at your claimed home office deduction.