Are Work-From-Home Expenses Deductible?
Millions work from home, but can they deduct those expenses? The answer depends entirely on whether you're an employee or self-employed.
Work-From-Home Tax Deductions
The Short Answer for W-2 Employees
No — under current tax law (TCJA 2018–2025), W-2 employees cannot deduct home office expenses, even if their employer requires them to work from home.
The unreimbursed employee expenses deduction was eliminated through 2025.
Ask Your Employer for Reimbursement
If your employer reimburses home office expenses under an accountable plan, the reimbursement is tax-free to you.
Self-Employed Home Office Deduction
If you're self-employed (including freelancers and gig workers), you CAN deduct home office expenses if:
- The space is used regularly and exclusively for business
- It's your principal place of business
Deductible using the simplified or regular method.
State-Level Deductions
Some states allow employees to deduct unreimbursed employee expenses that are no longer allowed federally (e.g., California, New York).
What Changes After 2025?
If TCJA provisions expire, unreimbursed employee expenses may become deductible again as miscellaneous itemized deductions (subject to the 2% AGI floor).
Work from home for your employer? Check if your employer offers expense reimbursements — a much better option than deductions.