Calculating certain tax breaks discourage U.S. tax payers. In the past, the IRS required those who work from home and take a deduction for using a portion of the home to go through somewhat cumbersome calculations. It required to add up home office expenses including home mortgage interest, property taxes, insurance, and utilities and takes a percentage share equal to the home office.

The new guidelines effective starting from 2013 will allow $5 per square feet of floor area up to 300 square feet and subject to a maximum of $1,500 deductible. You can use the new easy streamlined method if you elect to do so when you file your 2013 Federal Tax return in 2014. You will still be allowed to calculate home office deduction the old way if you elect to do so too.

During economic slowdown many start to work from home, self-employed or start a new business from home. Tax experts estimate that 5.8 million U.S. tax payers work from home and about 3.4 million claim the home office deduction. Many think the new streamlined process make it easier to calculate the home office deduction come tax time.