US: Home office deduction checklist 2026 (Schedule C)

Summary

Sources: IRS Publication 587 and Schedule C instructions — confirm thresholds and definitions each tax year.

If you work from home, the IRS may allow a deduction for the portion of your home used exclusively and regularly for business. This article is a practical checklist, not a substitute for professional advice.

1. Exclusive use

The space cannot double as a family room or guest bedroom on weekends if you claim it as an office. Exceptions for daycare and storage of inventory are narrow—read IRS examples.

2. Principal place of business

For many freelancers, the home office qualifies if you perform substantial administrative work there and have no other fixed location. If you have an external coworking desk you use most days, facts matter.

3. Simplified vs actual expense

The simplified method caps square footage and uses a standard rate; actual expense allocates rent, utilities, and depreciation with more recordkeeping. Compare both with your CPA.

4. Records to keep

• Floor plan with measured area
• Photos dated annually
• Utility bills and lease allocation worksheets
• Calendar showing business use vs personal use

5. FAQ

Does Wi-Fi count? Often allocated by business-use percentage; document the methodology.

6. Sources

• IRS Publication 587
• IRS — Schedule C