The rise of remote work is redefining the traditional workplace. Many Americans now find themselves reliant on an Internet connection for work, blurring the lines between personal and professional spending. This leads to a question: If you work from home, can you deduct internet costs on your taxes?
Answer Depends on your employment status.
Who can deduct from taxes if working from home?
Tax Cuts and Jobs Act of 2017 Suspension of most employees’ ability to deduct home office expenses, including Internet charges, until 2025. This means that if you receive a W-2 form from your employer, You can’t claim internet expenses on your tax returneven if you work entirely from home.
However, there is a silver lining. Some employers offer work-from-home allowances or expense reimbursement programs Help offset the additional costs associated with remote work. It is always worth checking with your HR department whether such a scheme exists.
for self-employed, the image is brighter. If you’re a freelancer, contractor, or small business owner, internet access can be an important business expense. IRS allows self-employed individuals to deduct some home office expensesincluding utilities such as internet, based on the percentage of homes dedicated to business use.
Calculate your deductions
There are a few key points to remember when claiming a home office deduction for internet expenses:
- Exclusive commercial use: The amount deducted from your internet bill must be used primarily for business purposes. If you also use the internet for personal activities, you’ll need to track and differentiate business use so you can accurately deduct it.
- Regular space and exclusive space: Your home office must be a dedicated and regular work space, not just a casual work area.
- Simplified options: The IRS offers simplified deduction options for home office expenses. This eliminates the need for precise space calculations and allows for a flat deduction per square foot of dedicated work space.