1099 & side work

Home office (simplified method)

Last verified: 2 min read Rule card + research brief
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Home office, simplified methodFloor plan with one room marked as a dedicated office used regularly and exclusively for 1099 work. Simplified method: $5 per square foot, up to 300 square feet, so $1,500 max, limited by gross income from the business.Officeregular + exclusive useBedroomLivingKitchenSimplified method$5 per sq ftup to 300 sq ft= $1,500 maxLimited by gross incomefrom the business.
Home office, simplified method

The rule (settled)

  • The space must be used regularly and exclusively for your 1099 business, as your principal place of business. Administrative and management work done at home counts.
  • Simplified method: $5 per sq ft, up to 300 sq ft, so $1,500 max. It's limited by gross income from the business.
  • The regular method (actual expenses and depreciation) isn't covered here. Ask your CPA.

What it means for you

  • Fits a dedicated room or area used for 1099 work such as legal nurse consulting (LNC) chart review.
  • Unlikely to fit 1099 PRN bedside work, which is done at facilities, though regular admin work at home can count (depends on facts). Not deductible for a W-2 job. (Pub 587 (2025))
  • Keep a floor sketch, measurements, and photos showing exclusive use.

Gray areas

  • A mixed-use room fails the exclusive-use test.
  • Whether home is your principal place of business when most income comes from facilities.

What to keep

  • A floor sketch, measurements, and photos showing exclusive useFrom: Home office card

Sources

Research, not tax advice. Confirm with a CPA or EA before filing.