Home Office Deductions: What Remote Workers Should Know Before Tax Season

By: |Published on: May 16, 2025|Categories: Tax Planning|

“The hardest thing in the world to understand is income tax.” – Albert Einstein

Even Einstein struggled with taxes. So, if the thought of sorting out your home office deduction makes you want to run for the hills or shut your laptop and call it a day you’re not alone.

But here’s the thing: if you’re one of the millions of Americans working remotely, you might be leaving serious money on the table when tax season hits.

At Estess CPAs, we’ve helped hundreds of small business owners and remote professionals in the greater New Orleans area reclaim their time, reduce their tax liability, and gain real clarity around what deductions actually apply. Let’s walk through what you really need to know: no fluff, no jargon.

What Is the Home Office Deduction And Who Qualifies?

First, the truth bomb: not every remote worker qualifies for the home office deduction. That’s often misunderstood.

Here’s the breakdown:

  • Self-employed individuals, freelancers, and gig workers? You may qualify.
  • W-2 employees working remotely for a company (even full-time)? Sorry unless you’re a statutory employee, this deduction is generally off-limits due to the 2017 Tax Cuts and Jobs Act.

So, if you’re running your own LLC, freelancing on Upwork, or doing contract work, this is for you.

What Counts as a “Home Office”?

This is where the IRS gets picky and we don’t blame them. To qualify:

  • The space must be used regularly and exclusively for business.
  • It doesn’t have to be a separate room, but it can’t double as your guest bedroom or kids’ playroom.
  • It must be your principal place of business or a place where you meet clients or handle administrative work.

That cozy corner with your standing desk and dual monitors? That could count.
 The dining table you clear off every night? Unfortunately, no dice.

Two Methods to Claim the Deduction

1. Simplified Method

  • You deduct $5 per square foot, up to 300 square feet.
  • That’s a maximum deduction of $1,500.
  • No need to track every utility bill. Great for side hustlers and new freelancers.

2. Regular Method

  • You calculate actual expenses like a portion of your: 
    • Rent or mortgage interest
    • Utilities
    • Homeowners insurance
    • Repairs and depreciation

This one requires more recordkeeping, but the savings can be significantly higher. We’ve seen clients save over $3,000 using the regular method. Is it worth it? Often, yes if you’ve got the numbers to back it up.

Beyond the Office: Other Deductions Remote Workers Often Miss

Remote work financial planning goes beyond the desk. Think about:

  • Internet and phone bills – Deduct the percentage used for business.
  • Office furniture – Desk, chair, monitor mounts. (Yes, even your ergonomic footrest might qualify.)
  • Subscriptions and software – Zoom Pro? QuickBooks? Canva? Track it all.
  • Business miles – If you meet clients or drive to a co-working space, keep a mileage log.

And if you’re managing or part of a virtual team, don’t forget budgeting for contractor payments, 1099 filings, and project management software all of which may be deductible.

Pro Tip: Keep Your Receipts & Track Digitally

Use tools like:

  • QuickBooks – (We offer dedicated setup and training!)
  • Expensify
  • Google Sheets

Your future self (and your CPA) will thank you come tax time.

Should You DIY or Bring in a Pro?

Sure, you could handle this on your own. But if you’re juggling invoices, growing your business, and trying to stay IRS-compliant, it might be time to call in some backup.

That’s what we do best at Estess CPAs. We’re not just number-crunchers, we’re trusted advisors who help you keep more of what you earn while staying organized and audit-ready.

Final Thoughts: Be Proactive, Not Panicked

Tax planning shouldn’t begin in April. If you’re self-employed or managing a remote team, the smartest move you can make is to think ahead.

Let’s get your books in order before tax season. Whether you’re in Belle Chasse, Luling, or working from your kitchen island, we’re here to help you save time, reduce stress, and pay only what you actually owe, not a penny more.

Want help figuring out your home office deductions or virtual team budgeting?
 Schedule your free consultation with Estess CPAs today. We’ll treat you like family and we’ll help you keep more of your money where it belongs: in your business.

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Estess CPAs
 Helping Louisiana’s small businesses and remote professionals thrive for over 20 years.

 Belle Chasse: (504) 433-5122
 Luling: (985) 785-1470
 Email: [email protected]