How Work From Home Will Save More Small Business Owners on Taxes This Filing Season

Posted under: SMB
Date: 2024-02-21
How Work From Home Will Save More Small Business Owners on Taxes This Filing Season

Entrepreneurs are increasingly seeking tax benefits for their work-from-home habits, as many founders have adopted a hybrid schedule or decided to leave their offices. The home office tax deduction, which has long been a staple for solopreneurs, has gained more interest this tax season. As of this year, nearly two-thirds of American companies allow some regular degrees of remote work, up from half a year ago, according to data from the Flex Index. This trend is even more pronounced among smaller and younger companies, which are more likely to be fully remote. Entrepreneurs must be business owners, sole proprietors, partners, or LLC members to qualify for home office deduction, available to both renters and homeowners. The IRS offers two tax deduction options for business owners: the simplified option, which deducts $5 per square foot of home office, and the regular method, which requires more calculation.