Work From Home Tax Deductions

Can I deduct working from home as an employee?

Generally not. Publication 17 says you can no longer claim unreimbursed employee expenses unless you fall into one of a few categories of employment: Armed Forces reservists, qualified performing artists, fee-basis state or local government officials, and employees with impairment-related work expenses. Publication 587 also shows no home office deduction when you use the part of your home as an employee.

If your employer repays you for a cost, there is nothing to deduct for that amount.

Am I an employee or self-employed?

The IRS decides by weighing the whole relationship, in three groups of evidence: behavioral control, financial control and the type of relationship. A 1099 form alone does not settle it. The IRS page on independent contractor or employee lists the questions.

What can a self-employed person deduct at home?

A self-employed person claims ordinary and necessary business costs on Schedule C. Publication 334 says an ordinary expense is common and accepted in your field and a necessary expense is helpful and appropriate for your business. At home that can include:

• The business share of rent, utilities, insurance and repairs, if a home office qualifies
• Office supplies and materials you use up in the business
• Equipment, with the choice to deduct up to $2,500 per item or invoice in the year you buy it under the de minimis safe harbor
• Business long distance calls and a second phone line used only for business

What if I work from home only some days?

The home office tests ask for regular and exclusive use. Publication 587 says incidental or occasional business use is not regular use, and that the IRS looks at all the facts. For your home to be your principal place of business, you must use the space exclusively and regularly for administrative or management activities, such as billing, keeping books, ordering supplies or setting appointments, and have no other fixed location where you do substantial administrative or management work.

Can I deduct my internet and phone?

Publication 587 covers the phone: the basic local charge for your first landline is personal, while business long distance calls and a second line used only for business are deductible. The IRS pages we used do not list internet service as its own item. Publication 334 says that when a cost is partly for business and partly personal, the personal part is not deductible, so ask a tax professional how to split a shared connection.

What proof should I keep?

Keep receipts, bills and statements that show who you paid, how much, when and what for, plus a record of the size of any home office space. Our hub Receipts for Taxes explains what each document should show.

Sources: IRS Publication 587 (2025), Business Use of Your Home (read October 31, 2026); IRS Publication 334 (2025), Tax Guide for Small Business (read October 30, 2026); IRS Publication 17 (2025), Your Federal Income Tax, miscellaneous deductions (read October 31, 2026); IRS, Independent contractor (self-employed) or employee? (read October 31, 2026).