If you’re one of the estimated 22.5 million US workers currently working from home, you’re probably feeling pretty smug about saving money on office commutes, and city lunches.
However, from investing in ergonomic office chairs to covering the costs of business travel, working from home isn’t a free ride. Fortunately, certain workers can ease this financial load by claiming tax deductions on WFH-related expenses – from home office costs to software license fees.
If you’re interested in claiming back cash in this tax season, we’ve outlined some key remote working tax deductions that you should be aware of, before offering some practical advice to help you file your claim.
Which Remote Workers Can Apply For Tax Deductions?
In 2025, most self-employed workers, including freelancers, small business owners, and independent contractors will be able to claim tax deductions for work-related expenses.
However, most formally employed W-2 employees are not eligible for federal tax deductions, unless they are employed in the following states or cities: California, Illinois, Iowa, Massachusetts, Minnesota, Montana, New Hampshire, New York, North Dakota, Pennsylvania, South Dakota, The District of Columbia, and Seattle.
There are some exceptions, however. Military reservists are able to claim tax back on travel expenses if they travel over 100 miles from home for service activities, even if they’re W-2 employees. The Fair Labor Standard Act also declares that all US employees are entitled to tax write-offs if costs associated with working from home cause their earnings to drop below the federal minimum wage.
Which Tax Deductions Are Remote Workers Entitled to?
If you’re planning to claim for tax deductions, you need to be aware of the stipulations first. Here are some common tax write-offs remote employees are eligible for:
- Home office costs
- Business equipment
- Travel expenses
- Vehicle mileage
- Business meals
- License fees
- Health insurance premiums
- Retirement contributions
1. Home office deductions
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Do you work from a home office? If so, you may be able to deduct a portion of your home expenses on your tax return. This tax break is offered by the government to help remote workers offset the expenses of maintaining their home office.
The tax break is eligible for homeowners and renters (provided they meet the IRS’s requirements) and could help ease the costs of mortgage interests, homeowners insurance, rent, utilities, property taxes, and more.
To be entitled to the home office tax deduction, workers need to use their home office space exclusively and regularly for business purposes. This means that if you work in a room with multiple purposes – like a bedroom, dining room, or living room – you probably won’t be eligible.
Your home office will also need to be your primary working location. So, if you only work from home occasionally, you may not qualify.
2. Business equipment
Self-employed and eligible W-2 employees can also claim tax deductions for up to $1,050,000 for qualified business equipment.
Eligible items include hardware like computers, monitors, and prints, office furniture like desks, chairs, and laptop stands, and stationery products like paper, desk organizers, and printer ink.
However, according to the IRS, to be entitled to the tax break you must own all the property and be able to use it for over a year. The property must also be used to make money or contribute to your role, and you’ll need to explain how this is done as part of your application.
3. Travel expenses
If your remote job requires you to travel to different locations, and you don’t own a vehicle, you may also be able to claim tax deductions on travel expenses. Depending on your method of travel, deductible travel expenses could include transportation fees such as train, bus, or airplane tickets.
However, as with all tax deductions, certain stipulations apply. The travel you claim for must be “away from your tax home”, AKA where you carry out business affairs, and require an overnight stay. You’ll also need to keep detailed records of your travels, including information about your trip’s purpose, and the receipts from your travel tickets.
4. Vehicle mileage
If you travel using your own vehicle for business-related travel, you also may be able to claim back tax on your vehicle’s mileage. This perk applies whether you’re making a long trip across states, or covering short distances within your own city.
You’re able to claim by using the actual expense that occurred, or by using the IRS standard mileage rate. To claim during the latter, you’ll need to keep a log of miles driven and separate personal and business distances. As of 2025, the IRS’s standard rate is 70 cents per mile for eligible workers.
However, in addition to milage rates, you’ll also be able to claim tax back on other vehicle-related costs including insurance, vehicle registration, maintenance, parking costs, and toll fees.
5. Business meals
Does your job regularly require you to eat away from home? If so, remote workers are also entitled to claim tax deductions on business meals, under specific circumstances.
According to current IRS guidelines, 50% of the cost of the meal is deductible. But to qualify, the meal will have to either take place with customers, clients, or other business associates, be consumed during an overnight stay for business purposes, or be provided during business meetings or events that are directly related to work.
Meals for personal consumption or convenience aren’t covered with this tax deduction, however. This means that if you DoorDash a meal to your house during company time, you’ll, unfortunately, have to cover the full cost of this yourself.
6. License fees
If you’re paying for licenses that are directly related to your remote work, you may be able to claim tax deductions on these fees.
Deductible licenses include professional licenses required to work in professions like medicine, law, or accountancy, licenses businesses need in order to operate, and software subscriptions needed for daily work activities, like Microsoft Office 365 or Adobe Creative Cloud, for example.
In short, in order for the license to be tax deductible, it will need to be directly related to your remote work. This means that licenses and subscriptions for personal use, like lifestyle magazine subscriptions or social and recreational activities, will not be covered.
7. Health insurance premiums
Health insurance can be a huge expense for self-employed workers. So, you’ll probably be relieved to hear that you also may be able to claim tax discounts on health insurance premiums.
If you’re a self-employed worker and use health insurance that was purchased under you or your business name, you’ll be able to deduct the cost of health insurance premiums for yourself, your spouse, and your children aged under 27. However, you won’t be able to claim this deduction if you or your spouse is eligible for employer-subsidized health insurance, even if you choose not to enroll in your company’s plan.
In 2025, qualifying health insurance includes medical insurance, certain qualifying long-term care coverage, and all Medicare premiums (parts A, B, C, and D).
8. Retirement contributions
Planning for the future is necessary, but can be costly. Fortunately, certain workers can claim tax cuts on retirement contributions, to help ease the financial burden of filling the pension pot.
Several retirement plans are covered under these deductions, including the Simplified Employee Pension (SEP) IRA plan, the Solo 401(k) plan, and the SIMPLE IRA plan. The first two plans have contribution limits of up to $66,000, while SIMPLE IRA is substantially lower at $15,000, or $19,000 if you’re over 50 years old.
If you’re an employee who contributes to an employer-sponsored retirement plan, money put into these accounts is typically pre-taxed, which means they reduce taxable income automatically.
How Should Remote Workers Claim Tax Deductions?
If you think you’re eligible for some of these tax exemptions, but haven’t filed one before – rest assured. The process is relatively straightforward, and shouldn’t take too long provided you’ve kept detailed records of your expenses.
First, we recommend using dedicated tax software to help you keep track of important data and to ensure you claim all of your deductions. You can also hire an accountant to manage the process if you want to ensure all bases are covered.
Then, if you’re a self-employed worker, you’ll have to claim tax deductions on most business expenses with Schedule C tax forms (Profit or Loss from Business) and include self-employment taxes on the Schedule SE form.
The process will be slightly different for traditional W-2 employees. If you fall into this category, you’ll have to use a Schedule A (Itemized Deductions) form for any eligible deductions, in addition to filing state tax returns if your state permits additional deductions.
When Should Remote Workers Claim Tax Deductions?
You should aim to claim these tax deductions as you file your taxes. In the US, the tax season falls from January 1 to April 15. If you aren’t able to meet this April deadline, you can also request a filing extension using Form 4868. If your request is approved you will have until October 15 to file your tax deductions.
However, self-employed workers are required to pay taxes quarterly, with deadlines landing on April 15, June 15, September 15, and January 15, so it’s important to be aware of dates before you begin preparing your claim.
If you run your own business, don’t forget to check out our guide to grants for small businesses available this month.
