Home office expenses can be claimed on your tax return, but the specific form you use depends on your country's tax regulations and your employment status. Below is a general guide for the United States, as tax rules vary significantly by country.

For Self-Employed Individuals in the U.S.

If you are self-employed and operate a business from your home, you can deduct home office expenses on Schedule C (Form 1040). This form is used to report income or loss from a business you operated or a profession you practiced as a sole proprietor.

1. Schedule C (Form 1040):

   • On Schedule C, you report your business income and expenses, including home office expenses.
   • Home office expenses are typically calculated using the Simplified Method or the Regular Method:
     • Simplified Method: Allows you to deduct $5 per square foot of home used for business, up to a maximum of 300 square feet.
     • Regular Method: Requires you to calculate the actual expenses of your home office, such as a percentage of rent, utilities, insurance, and repairs, based on the size of your home office relative to your entire home.

2. Form 8829 (Expenses for Business Use of Your Home):

   • If you use the Regular Method, you must complete Form 8829 to calculate the deductible portion of your home office expenses. This form is then attached to Schedule C.

For Employees in the U.S.

If you are an employee working from home, the rules for deducting home office expenses have changed significantly due to the Tax Cuts and Jobs Act (TCJA) of 2017.

1. Prior to 2018:

   • Employees could deduct unreimbursed employee expenses, including home office expenses, as a miscellaneous itemized deduction on Schedule A (Form 1040).
   • These deductions were subject to a 2% of adjusted gross income (AGI) floor.

2. After 2018:

   • The TCJA eliminated the deduction for unreimbursed employee expenses, including home office expenses, for tax years 2018 through 2025.
   • As a result, most employees cannot deduct home office expenses on their tax returns during this period.

Exceptions for Employees

There are a few exceptions where employees may still be able to deduct home office expenses:

• Armed Forces Reservists: Certain reservists may deduct unreimbursed travel expenses, including home office expenses, on Form 2106 (Employee Business Expenses).
• State-Specific Rules: Some states may still allow deductions for home office expenses, even if the federal government does not. Check your state’s tax regulations.

For Businesses (Other Than Sole Proprietorships)

If your business is structured as a partnership, corporation, or LLC, the rules for deducting home office expenses may differ:

• Partnerships and LLCs: Partners or members may be able to deduct home office expenses on their individual tax returns, depending on the business structure and tax treatment.
• Corporations: If you are an employee of your own corporation, you may be able to have your corporation reimburse you for home office expenses under an Accountable Plan. These reimbursements are not taxable to you and are deductible by the corporation.

Recordkeeping Requirements

Regardless of your employment status, it’s essential to maintain accurate records to support your home office deduction. This includes:

• Documentation of the square footage of your home office.
• Receipts for expenses such as utilities, rent, and repairs.
• A log of business use if you use part of your home for both personal and business purposes.

Key Considerations

• Exclusive and Regular Use: To qualify for a home office deduction, the space must be used exclusively and regularly for business purposes.
• Principal Place of Business: Your home office must be your principal place of business, or you must use it to meet clients or customers regularly.
• Depreciation: If you own your home and use the Regular Method, you may need to account for depreciation, which could affect your capital gains tax when you sell your home.

Conclusion

The form you use to claim home office expenses depends on your employment status and the tax rules in your country. In the U.S., self-employed individuals typically use Schedule C and, if applicable, Form 8829, while employees are generally no longer able to deduct home office expenses due to the TCJA. Always consult a tax professional or refer to the IRS guidelines to ensure compliance with current tax laws.

If you are outside the U.S., check with your local tax authority for specific rules and forms related to home office deductions.