There's a persistent myth that claiming the home office deduction triggers an audit. It doesn't. The IRS has actually made this deduction easier to claim over the past decade, not harder.
Two ways to calculate it
Option one is the simplified method: $5 per square foot, up to 300 square feet, for a max deduction of $1,500. Easy to compute, no documentation needed beyond the square footage.
Option two is the actual-expense method: you calculate what percentage of your home is dedicated office space, then deduct that percentage of utilities, insurance, mortgage interest or rent, and depreciation. The actual-expense method usually beats the simplified method by 2–5×, but it requires actual records.
The "exclusive use" rule
To claim either, the space has to be used regularly and exclusively for business. A spare bedroom that doubles as a guest room on weekends doesn't qualify. A corner of your living room with a desk that you also eat dinner at doesn't qualify. A dedicated office, even if it's small, does.