Work From Home Tax Deductions - All You Need To Know

One of the amazing things about a work from home role is all the new tax deductions you can start claiming!

However, you need to be careful about what you can and can’t claim, especially if you want to avoid being harassed by the authorities. To help you out, we are going to break down the basics of work from home tax deductions and show how to slash your tax bill!
woman works from home

Did the Expense Directly Relate to Your Income?

The first question you need to ask yourself to figure out work from home tax deductions is whether you can reasonably argue that an expense is directly related to your income. For example, if you work in marketing and purchase a book about the latest digital marketing strategies, this can be claimed as a deduction. However, if you purchase the latest New York Times best-selling novel, you won’t be able to deduct the cost from your tax bill.

The most common tax deductions include work from home essentials such as:

• Computers
• Accounting fees
• Work uniform
• Tablets
• Electricity bill
• Water bill
• Phones
• Mobile bill
• Internet bill
• Office furniture - desks, chairs, stress ball, cabinets
• Stationary - pens, paper, folders
• Car expenses if used for work travel
• Taxi fares if used for work travel
• Bus and train fares if used for work travel

As you can see, the work from home benefits of being able to deduct a wide range of expenses can help you save thousands on your tax bill. However, If you have any doubt on whether or not an expense is related to your income, it is best to not deduct the expense. 

Do You Have a Record of the Expense?

Unfortunately, just incurring a work from home expense is not enough to claim it as a tax deduction. To satisfy the tax authorities, you must have extensive proof of your expense. While you won’t have to send the tax authorities your records to receive your deductions, you will have to show them if you are ever audited. 

During the auditing phase, the authorities will pour over all of your tax returns and if you can’t show proof of your expenses you will be left owing the tax department some serious cash and will need to try your luck at no deposit bonus casino to help pay it back! That is why you should take our work from home advice and only claim deductions that you can prove. You should also keep meticulous files of all your proof of expenses and store them in a secure place, as you never know when you will be audited.

The typical accepted forms of proof for expenses include:

• Receipts
• Credit card statements
• Bank statements
• Invoices

work from home

Did You Spend the Money Yourself?

The last thing you need to consider before claiming a work from home tax deduction is making sure you spent your own money on the expense, and you were not reimbursed. For example, if someone else bought you a laptop, you can not then claim this as a tax deduction. Also if you bought a work desk but then you received a refund or your company provided reimbursement you also can’t claim a tax deduction.

After reading our intro guide to work from home expenses, you should have no problem coming up with tax deduction work from home ideas and significantly reducing your tax bill. If you add just a few extra expenses to your list of work from home deductions, you should be able to save a few thousand and afford to go on a well-deserved holiday!


We would love to hear from people who work from home and have successfully filed a tax return. Please comment on what deductions you have been able to claim and why you chose to pursue work from home opportunities.

Author’s Bio

Scott Carrion is a freelance writer and analyst focusing on business and marketing. His Master’s degree in Business research from Curtis L. Carlson School of Management has given him a broad base from which to approach many topics. He works closely with B2B and B2C companies providing useful and engaging content that can convert viewers into customers.

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