How a Home Office Deduction Works for Hybrid Workers in 2026

In this episode of The Tax Strategy Podcast, Lucas and Luna tackle the home office deduction for hybrid workers in 2026. With the rise of hybrid schedules, many employees and self-employed individuals are unsure if they qualify. Lucas breaks down the strict eligibility rules under the Tax Cuts and Jobs Act, focusing on the 'exclusive and regular use' test and the 'principal place of business' test. He explains why W-2 employees almost never qualify, while self-employed individuals can use either the simplified method ($5 per square foot, up to 300 square feet) or the regular method (actual expenses). Luna shares a real-world example of a freelance graphic designer who saved $1,500 by using the simplified method. The episode also covers the impact of home office deduction on future home sales capital gains exclusion, and common red flags that trigger IRS audits. Tune in to learn exactly how to calculate your deduction and avoid costly mistakes. #HomeOfficeDeduction #HybridWork #TaxStrategy #SelfEmployed #IRS #TaxDeductions #Finance #BusinessPodcast #FexingoBusiness #TaxPlanning #2026Taxes #SimplifiedMethod #RegularMethod #HomeOfficeAudit #CapitalGains #FreelancerTaxes #RemoteWork #TaxTips Keep every episode free: buymeacoffee.com/fexingo