8 Tax Deductions Every Remote Worker Should Know About in 2025
Working from home comes with its perks—no more office commutes, expensive city lunches, or squeezing into crowded trains. But it’s not all savings. Whether it’s buying an ergonomic chair, upgrading your internet, or even occasional business travel, remote work has its costs. Luckily, some of these expenses can be offset through tax deductions.
Here, we’ll break down some key deductions remote workers might qualify for and share practical tips for filing your claims.
Who Can Apply for Tax Deductions?
In 2025, self-employed workers—freelancers, small business owners, and independent contractors—can claim tax deductions for work-related expenses.
However, if you’re a regular W-2 employee, you might not qualify for federal deductions unless you live or work in certain states or cities like California, New York, Illinois, or Seattle, among others.
There are exceptions, though. For instance, military reservists traveling over 100 miles for service can claim travel-related expenses. Additionally, if your work-from-home expenses drop your earnings below the federal minimum wage, federal law may entitle you to deductions.
Tax Deductions You Could Be Eligible For
Here are some of the most common deductions remote workers can claim:
- Home office costs
- Business equipment
- Travel expenses
- Vehicle mileage
- Business meals
- License fees
- Health insurance premiums
- Retirement contributions
Let’s dive deeper into each one.
1. Home Office Costs
If your home doubles as your office, you may be able to deduct certain expenses. This includes a portion of your rent, mortgage interest, utilities, and even property taxes.
To qualify, your workspace must be used exclusively for business and be your primary work location. If you’re working at your dining table or in a shared room, you might not be eligible. But if you have a dedicated area for work, this deduction can make a big difference.
2. Business Equipment
From laptops to standing desks, any equipment used for work can be deducted. You can claim up to $1,050,000 in qualified expenses, including hardware, furniture, and even office supplies.
Keep in mind, the IRS requires the equipment to be owned by you and used for over a year. You’ll also need to explain how it supports your business role when filing your claim.
3. Travel Expenses
If your job requires travel, you might be eligible for deductions like train tickets, flights, or bus fares. But there’s a catch: the travel must take you away from your main work location and require an overnight stay.
Keep detailed records of your trips—why you traveled, receipts, and any other proof—to back up your claim.
4. Vehicle Mileage
If you use your car for business travel, you can claim deductions for mileage. In 2025, the IRS standard rate is 70 cents per mile. Alternatively, you can calculate actual expenses like gas, maintenance, and insurance.
Remember to log your trips carefully, separating personal and business mileage.
5. Business Meals
Do you often eat out during work-related meetings or trips? If so, 50% of the cost of those meals can be deducted.
To qualify, the meal must be tied to business purposes, such as dining with clients or attending work events. Meals for personal convenience or casual orders (like that lunch delivery during your workday) won’t count.
6. License Fees
Any professional licenses or subscriptions directly related to your job—like software tools or certifications—can qualify as deductions.
For instance, tools like Adobe Creative Cloud or licenses needed for law, medicine, or accounting can be deducted. However, personal subscriptions like lifestyle magazines won’t qualify.
7. Health Insurance Premiums
If you’re self-employed, health insurance costs can be a significant burden. Fortunately, premiums for you, your spouse, and children under 27 can be deducted—provided the policy is under your name or your business’s name.
This deduction doesn’t apply if you’re eligible for employer-subsidized plans, even if you choose not to use them.
8. Retirement Contributions
Saving for the future is vital, and tax deductions on retirement contributions can lighten the load. Plans like SEP IRA, Solo 401(k), and SIMPLE IRA are eligible, with contribution limits of up to $66,000 for some plans.
If you’re part of an employer-sponsored plan, contributions are often pre-taxed, so they reduce your taxable income automatically.
How to Claim Tax Deductions
Filing for deductions isn’t as intimidating as it sounds. Start by keeping detailed records of your expenses. Use tax software to organize your data or hire an accountant to ensure accuracy.
- Self-employed workers: Use the Schedule C form for business expenses and Schedule SE for self-employment taxes.
- W-2 employees: Use Schedule A for itemized deductions and file state tax returns if your state allows additional claims.
When to File
The U.S. tax season runs from January 1 to April 15. If you need more time, request an extension using Form 4868, which gives you until October 15.
For self-employed workers, taxes are due quarterly: April 15, June 15, September 15, and January 15. Mark your calendar and plan ahead to avoid penalties.
Final Thoughts
Working from home has its benefits, but managing expenses can be tricky. By understanding these tax deductions, you can ease some of the financial stress and focus on what matters most—doing your best work.
And if you’re a small business owner, don’t miss our guide to the latest small business grants available this month.
