How the Tax Code Shapes Your Home Office Deduction in 2026

In this episode of The Tax Policy Podcast, Lucas and Luna dive into the home office deduction — one of the most misunderstood and underclaimed tax breaks for the self-employed. They break down the two calculation methods (simplified versus regular), explain the exclusive-use rule that trips up most filers, and walk through a real-world example from a freelance graphic designer whose deduction saved her $1,400 in 2025. The conversation also covers the 2026 inflation-adjusted limits, the impact of state conformity, and why the deduction is virtually unavailable to W-2 employees. If you run a side hustle or work from home as a freelancer, this episode will help you decide whether the paperwork is worth it. #HomeOfficeDeduction #SelfEmploymentTax #TaxCodeShapes #FreelancerTaxes #TaxPolicy #IRS #SimplifyTax #SmallBusinessTax #SideHustle #TaxDeduction #Economics #FexingoBusiness #BusinessPodcast #TaxStrategy #RemoteWork #InflationAdjustment #StateTax #TaxCompliance Keep every episode free: buymeacoffee.com/fexingo