Working from home belongs on Line 30, line 30, business use of your home.
Why line 30
There is no rent line for the home you live in. Part II line 20b is rent you pay for separate business property, and putting your apartment rent there is one of the most common Schedule C errors. The home office deduction is computed after Part II, either on Form 8829 or with the simplified method worksheet, and the result lands on line 30, which sits below the expense total. The space has to be used regularly and exclusively for the business and be your principal place of business or a place you meet clients, so a kitchen table used in the evenings does not qualify while a spare bedroom used only for work does.
Log it once, with the line already on it. Type an expense in plain words in ClaryBook and it is filed with a date, vendor, amount and what it was for, so the number your preparer needs for working from home is already written down.
Start for freeWhat working from home is confused with
- Line 20b, rent or lease of other business property
- Line 20b is for rent paid to a landlord for premises separate from your home, so an outside studio or office goes there while your own home never does.
- Line 25, utilities
- Household electricity, gas, water and trash are indirect home costs allocated on Form 8829, not line 25 utilities, which is for utilities at a separate business location.
- Schedule A, schedule a, personal itemised deduction
- The non-business share of home mortgage interest and real estate taxes stays on Schedule A if you itemise, so the same bill splits between Form 8829 and Schedule A.
Examples that belong on line 30
- A 120 square foot spare bedroom used only for work in a 1,200 square foot flat: 10% of rent and utilities on Form 8829
- $1,800 a month rent, 10% business use: $180 a month of indirect expense to line 30
- $95 to repaint the office room only: a direct expense, fully allocated to the office
- A desk in the living room where the family watches television: fails exclusive use, no deduction
- A detached garage workshop used only for the business: qualifies, and does not need to be your principal place of business if clients come there
What does not belong here
- Your home rent on line 20b, which is the error this page exists to stop.
- Household utilities on line 25.
- Paying yourself rent for the room, which produces no deduction because you and the business are the same taxpayer.
- Furniture and equipment for the office, which are assets on line 13 and are deducted separately from the space itself.
The limit that applies
The line 30 deduction is capped by the gross income limit computed on Form 8829, so it cannot create or increase a loss. Amounts limited by that cap carry forward if you used actual expenses.
What to keep
Keep a measured floor plan showing the office dimensions and the total area, photographs of the room in use, the lease or mortgage statements, and the utility bills for the year. The measurement is what proves the percentage.
Other expenses on line 30
Related lookups
- Where does office rent go on Schedule C?
- Where does internet go on Schedule C?
- Where does state income tax go on Schedule C?
Sources
This page explains how Schedule C lines work. It is general information, not tax advice for your situation. If an expense is large or the answer turns on a fact about your business, confirm it with your tax preparer.
Looking for a different expense? The full Schedule C line lookup has every line from 8 to 27 with the expenses that belong on each, and Schedule C expense categories walks the whole form in order.
Log it once, with the line already on it. Type an expense in plain words in ClaryBook and it is filed with a date, vendor, amount and what it was for, so the number your preparer needs for working from home is already written down.
Start for free