Publish date:

Tax Tip: Work In Your Fuzzy Slippers? Consider The Home Office Deduction

If you're fortunate enough to work from home in your fuzzy slippers (wait until you see mine!), consider taking the home office deduction on your tax return this year. Watch our video to see if you qualify!

How much do I love working at home in my fuzzy slippers?! 

Thankfully the IRS thinks its pretty cool too and offers a home office deduction.

If you work from home and don't have an office anywhere else, you may qualify for the home office deduction. 

And while many folks think it's an audit red flag, if you legitimately meet the rules, you should take the deductions!

So how do you meet the rules?

Decide if you how to calculate the deduction.  You have two choices - an easy option and a harder one -  

TheStreet Recommends

The easy option basically says you get $5 per square foot up to 300 square feet.

So if your home office is 300 square feet or less --definitely take the easy way out -- or the $1500 dollars.

If your office is bigger than that - you are entitled to write off all the expenses that are associated with the portion of your home - so  that would include rent, utilities, insurance and even housekeeping.

Then the percentage of these costs that is deductible is based on the square footage of the office to the total area of the house.

So it's your choice.

Just keep good records in case Uncle Sam ever invites himself over to come see your office.

But then maybe take off the slippers!

Tax Tips: Videos to help you prepare for tax season