How the Home Office Deduction Works in 2026

In this episode of The Tax Strategy Podcast, Lucas and Luna break down the home office deduction for 2026. They walk through the two calculation methods—the simplified option at five dollars per square foot and the actual expenses approach—and explain who qualifies under the exclusive and regular use tests. They discuss how the deduction interacts with the 2026 standard deduction, the impact on self-employment tax, and common pitfalls like depreciation recapture. With a focus on a specific example—a freelance graphic designer claiming 200 square feet—they show how the simplified method saves time and money. The hosts also touch on how remote employees usually can't claim the deduction, and why it's crucial to track expenses even if you use the simplified method. A practical episode for anyone who works from home and wants to maximize their tax savings without triggering an audit. #HomeOfficeDeduction #TaxPlanning #SelfEmployed #SmallBusiness #Deductions #Tax2026 #FreelancerTaxes #TaxStrategy #IRS #SimplifiedMethod #ActualExpenses #Finance #FexingoBusiness #BusinessPodcast #TaxTips #RemoteWork #DepreciationRecapture #TaxSavings Keep every episode free: buymeacoffee.com/fexingo