Does taking the home office deduction increase my chance of an IRS audit?
The old fear that a home office is an automatic audit flag is largely outdated. Since the IRS introduced the simplified method in 2013 and millions of people now work from home, the deduction is far more routine. What still draws scrutiny is claiming it incorrectly, especially failing the 'exclusive use' test by deducting a room that doubles as a guest bedroom or den. If you meet the rules, keep a photo of the space and records of your square footage and expenses, and claim it confidently. Choosing the simplified method (a flat rate per square foot up to 300 square feet) reduces both paperwork and risk while still delivering a legitimate deduction.
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