Remote work is here to stay—and while it brings flexibility and new opportunities, it can also introduce unexpected expenses.
The good news is that there are several tax deductions available for remote workers. The bad news is that they were suspended until 2026 by the Tax Cuts and Jobs Act (TCJA) of 2017 for almost all remote workers receiving W-2s.
Exceptions to the TCJA suspension of tax deductions for remote workers receiving W-2s:
Armed forces reservists
Qualified performing artists
Some state and local officials
Employees with impairment-related work expenses
If you are self-employed or an independent contractor, you are still eligible to deduct some home office expenses. Understanding what you can and can’t claim can help lower your taxable income and keep you compliant with current tax laws.
Home Office Deduction
Who Qualifies:
To claim a home office deduction, the space should be your principal place of business or a place where you regularly meet clients. It must be used exclusively and regularly for business only.
Exclusively means you can’t claim the home office deduction if your office is tucked into a corner of the family room or if your children use your office to complete their homework.
Regularly means you can’t claim the home office deduction if you conduct most of your business elsewhere and only occasionally use your home office for business.
What You Can Claim:
Direct Expenses: Costs solely related to the home office (e.g., painting or repairs in the office space).
Indirect Expenses: A percentage of expenses such as rent, mortgage interest, utilities, insurance, and maintenance. Calculate the percentage of your home used for business by dividing the office area in square feet by the total home area in square feet.
Equipment and Supplies
Remote work often requires specialized equipment and supplies to stay productive. You can deduct expenses for:
Computers, Printers, and Software: Devices and programs necessary for your job.
Office Supplies: Items like paper, pens, and other office essentials.
Furniture: Ergonomic chairs or desks, if they’re used exclusively for work.
Communication Expenses
If you work remotely, reliable internet and phone service are critical.
Internet: A percentage of your monthly bill may be deductible if you use it for work.
Cell Phone: If you use your cell phone for business purposes, a portion of your bill might be deductible. Keep detailed records to justify the business use.
Travel and Meals (for Self-Employed or Business Owners)
When you travel for work-related reasons—such as meeting clients or attending conferences—you may be able to deduct:
Mileage or Transportation Costs: Keep a log of business-related travel.
Lodging and Meals: Generally, meals are deductible at 50% of the cost, while lodging expenses can be fully deducted when incurred on business trips.
Record Keeping is Crucial
You are not required to submit documentation of expenses when filing your tax return. However, if you happen to be audited, proper documentation will be requested.
Receipts & Documentation: Save all receipts, invoices, and bills related to your deductible expenses.
Detailed Logs: Maintain a record of business use (for example, the square footage of your home office or mileage logs for business travel).
Key Takeaways
Tax deductions for remote employees can provide significant savings—just not until the suspension of the Tax Cuts and Jobs Act is lifted in 2026. But it’s important to understand the rules and ensure your expenses qualify if you are a self-employed contract worker or business owner.
The IRS treats home office deductions and other expenses with strict criteria, so always keep thorough documentation and consider consulting a tax professional to optimize your filings and avoid being audited.
AMG Finance has highly-qualified tax preparers on staff and ready to help you complete your tax return accurately and efficiently. Contact us to schedule an appointment and see how easy tax prep can be with AMG.
