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Home Office Deduction Form: Expenses for Business Use of Your Home
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Form 8829 in short
Form 8829 figures the allowable expenses for business use of your home that go on Schedule C, and any amount that carries over to the next year. It is filed only with Schedule C (Form 1040), with a separate form for each home used for business. The current form is for tax year 2025.
| Issued by | Internal Revenue Service (IRS) |
|---|---|
| Current version | 2025 (checked 2026-10-25) |
| Who fills it in | Self-employed people filing Schedule C who claim actual expenses for a part of their home used regularly and exclusively for business, or regularly for daycare or storing inventory or product samples. Not used by partners, Schedule F filers, employees, or anyone who elected the simplified method for that home. |
| Who receives it | The IRS, attached to Form 1040 with Schedule C. |
| Where to send it | Attach it to your Form 1040 with Schedule C. It is not filed on its own. |
| Deadline | Due with your Form 1040, including any extension. |
| Official links | Official page · Official PDF · Official instructions |
What changed
The 2025 instructions note that the overall limit for state and local tax deductions increased to $40,000 ($20,000 if married filing separately), reduced when modified adjusted gross income is over $500,000 ($250,000 if married filing separately), but not below $10,000 ($5,000). The IRS posted updates to the line 11 worksheet and line 17 instructions in March 2026.
How to fill out Form 8829, line by line
| Line 1 | Area used for business Square feet (or another reasonable measure) of the space used regularly and exclusively for business, regularly for daycare, or for storing inventory or product samples. |
| Line 2 | Total area of home Total area of the home, using the same unit as line 1. |
| Line 3 | Business percentage of area Line 1 divided by line 2, as a percentage. |
| Lines 4 to 6 | Daycare hours Only for daycare space not used exclusively for business. Enter hours used for daycare and 8,760 hours (or a prorated figure if you started or stopped during the year). |
| Line 7 | Business percentage The percentage used to split indirect expenses. For most filers it is the same as line 3. |
| Line 8 | Income limit Starts with Schedule C, line 29, adjusted for certain gains and losses as the instructions explain. Lines 15, 27 and 33 limit the deduction based on this amount. |
| Lines 9 to 22 | Direct and indirect expenses Column (a) is for direct expenses that benefit only the business part, such as painting the office. Column (b) is for indirect expenses for the whole home, such as insurance, rent, utilities and repairs. |
| Lines 25 and 31 | Prior year carryovers Unallowed operating expenses and excess casualty losses and depreciation from your 2024 Form 8829 or 2024 Simplified Method Worksheet. |
| Line 36 | Allowable expenses The deduction that goes to Schedule C, line 30. If the home was used for more than one business, split it among them. |
| Lines 37 to 42 | Depreciation of your home Use the smaller of adjusted basis or fair market value, remove land, apply the business percentage, then the depreciation percentage from the instructions (2.564% for most homes first used for business after May 12, 1993 and before 2025). |
| Lines 43 and 44 | Carryover to 2026 Operating expenses and excess casualty losses and depreciation that could not be deducted this year. |
Common mistakes to avoid
- Including space that is also used for personal purposes. Outside the daycare and storage exceptions, the space must be used exclusively and regularly for business.
- Entering the whole electric bill in column (b) when only part relates to the home office percentage. See the column (a) exception in the instructions.
- Entering mortgage interest and real estate taxes on lines 10 and 11 when you take the standard deduction. Those filers use lines 16 and 17 instead.
- Including land value in the depreciation basis on line 37 without subtracting it on line 38.
- Forgetting Form 4562 when you first used your home for business in 2025.
- Using Form 8829 for a home where you chose the simplified method for the year.
- Deducting more than line 8 allows and not carrying the excess forward in Part IV.
Questions about Form 8829
Who cannot use Form 8829?
Partners claiming home expenses, Schedule F filers, employees, anyone whose home expenses all belong in inventory costs, and anyone using the simplified method for that home.
Can I use Form 8829 as an employee working from home?
No. The instructions say employees cannot deduct expenses for business use of the home on their personal return.
What is the difference between direct and indirect expenses?
Direct expenses benefit only the business part of the home, like repairs to the office. Indirect expenses keep up the whole home, like utilities and insurance, and are multiplied by the business percentage.
I have two homes used for business. How many forms do I need?
Use a separate Form 8829 for each home you used for business during the year.
What happens if my home expenses are more than my business income?
The deduction is limited, and the unused part carries over to next year on lines 43 and 44.
Does daycare space have to be used only for business?
No. Daycare providers who meet the licensing rules can deduct space also used for personal purposes, using the hours calculation on lines 4 to 6.
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Checked against the official sources on 2026-10-25. PDF Editor Hub is not affiliated with the Internal Revenue Service or any government agency. This page is general information, not legal or tax advice.