Your qualified home office is easier to deduct thanks to the simplified method option. The maximum deduction is $1,500 ($5 per sq feet up to 300 sq feet). The simplified method is an option to those taxpayers who do not wish to pro-rate and depreciate expenses under the traditional home office rules. Taxpayers must still meet all the requirements to claim the deduction.

For those of you who were taking this deduction as an unreimbursed business expense from your employer, you will no longer be able to deduct business expenses for tax years 2018-2025 because the Miscellaneous Business Expense Deduction has been eliminated from your Schedule A (Itemized Deductions). You should ask your employer to offer an accountable plan so that you can receive reimbursements for your expenses directly from your employer. (Employees may be able to deduct certain expenses on their state tax returns. Pennsylvania recognizes some business employee expenses, for example.)

For those of you who are self-employed, you may continue to deduct these expenses, where applicable, on your Schedule C.

To be clear, for those employees working from home during the pandemic, you may be able to deduct your home office on your state return (possibly Pennsylvania), but not on the federal return. Pennsylvania does not recognize the simplified home office deduction as described above, however.