Many people think that you have to own a home to get tax deductions on payments. However, while there is a home mortgage deduction for interest paid, if you have a home office, you can deduct a portion of your rent payments as well. So, if you work from home, and don’t quite yet have the means to buy, you can still get a tax deduction.

You figure the business use for your home just about the same way you would for a regular home mortgage payment deduction for your home office. However, you would enter the deductible amount in column b of Form 8829 rather than column a (which you would do if you own a home). Figuring your tax deduction in column b will classify your rent payments as indirect expenses rather than direct expenses.

If you have any tax questions, you can visit the IRS Web site, which also allows free downloads of all forms and publications.

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