![]() ![]() Estimating the square footage of your home office and express it as a percentage of your home’s overall square footage.You can then deduct the total amount of those expenses from your taxable income. Detailing and itemizing all of your expenses (for your home office) plus their corresponding amount.You can also use the following methods in calculating your 1099 reductions: When calculating your deductions, you can apply the 10% rule wherein if your home office takes up 10% of your home, you can deduct the amount equivalent to 10% of your home mortgage, utilities, and other expenses from your taxable income. Other than that, the depreciation value of your home, utilities, home insurance, and other repairs and renovations may also be deductible. Moreover, if your home office space is inside your house, you can deduct a portion of the interest you pay for your mortgage from your 1099. If you had any work or repairs done, do take note of that as well. It’s best to have a blueprint of your home office or work area – complete with the dimensions and measurements – in case the IRS asks for some documentation to confirm. With that, you should always come prepared. ![]() When it comes to the amount of the deduction, home offices are usually calculated by square footage, and the IRS would sometimes audit this to confirm. That said, kitchen tables, center tables, or desks that your children use for their homework would not qualify as a 1099 deduction, even if you spend most of your time running your business from there. The only stipulation for this is that you should use the space solely for work. An area you converted into a working space would still be eligible for deduction. However, you’d be glad to know that you can write off your expenses for your home office on your 1099. Home offices can be expensive, especially if you’re still at the early stages of your business.
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