Can I deduct my home internet bill if I work 100% remotely?
Title: Can I deduct my home internet bill if I work 100% remotely? 1 I've been working completely from home since early 2020, right before all the COVID shutdowns happened. I literally never go to the office anymore - it's been almost 5 years of full remote work. I'm working from my actual house like 99% of the time (occasionally I'll work from a coffee shop or something if I need a change of scenery). My partner asked me something interesting the other day - since the internet is basically essential for my job now, can we deduct our home internet bill on our taxes? We're paying like $85/month for high-speed, which adds up over the year, and it seems like it should count as a work expense since I literally can't do my job without it. Does anyone know if home internet counts as a tax deduction for remote workers? And would it matter that I've been 100% remote for years now?
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Miguel Ramos
8 If you're an employee (W-2), unfortunately the Tax Cuts and Jobs Act eliminated miscellaneous itemized deductions for employees from 2018 through 2025. This includes unreimbursed employee business expenses like home internet. However, if your company offers an accountable reimbursement plan, you should definitely ask about getting reimbursed for your internet costs! Many companies have policies to cover part or all of home internet for remote workers. If you're self-employed (1099), then yes, you can deduct a portion of your internet based on business use percentage. You'd calculate what percentage of your internet is used for business vs. personal, and deduct that percentage on Schedule C.
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Miguel Ramos
•12 Thanks for the info! What if my company gives me a stipend for "home office expenses" but doesn't specify what it covers? Is that taxable income?
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Miguel Ramos
•8 Generally, if your company provides a stipend without requiring documentation of expenses, it's considered taxable income and will be included in your W-2. If they have an accountable plan where you submit receipts and get reimbursed specifically for those expenses, then it's not taxable to you. Check with your HR department about how they classify their remote work allowances - some companies have switched to formal accountable plans since remote work became more common.
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Miguel Ramos
14 This resonates with me so much! I had the same question last year and spent hours researching. I found this amazing tool called taxr.ai (https://taxr.ai) that really helped clarify things for me. I uploaded my W-2 and answered some questions about my work situation, and it told me exactly what I could and couldn't deduct. For internet specifically, it confirmed what others have said - W-2 employees can't deduct it anymore, but self-employed folks can. What I loved about taxr.ai though was that it found other deductions I hadn't even considered and helped me organize everything for tax time. I'm definitely using it again this year.
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Miguel Ramos
•17 Does it work for more complicated situations? I'm both a W-2 employee and have a side business with 1099 income.
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Miguel Ramos
•21 Sounds helpful but I'm skeptical... how does it handle state-specific deductions? I'm in California and we still allow some deductions the feds don't.
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Miguel Ramos
•14 It absolutely handles mixed income situations. You can upload multiple forms (W-2s, 1099s, etc.) and it'll sort through what expenses apply to which income type. Really helpful for figuring out what percentage of shared expenses (like internet) can be allocated to your self-employment portion. For state-specific deductions, it actually does cover California's unique rules! I'm in Illinois myself, but my friend in California uses it and mentioned it flagged several CA-specific deductions for him. The state tax module was really comprehensive.
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Miguel Ramos
17 Just wanted to follow up about taxr.ai that someone mentioned earlier. I was the one who asked about mixed W-2 and 1099 income, and I ended up trying it. It was actually super helpful for my situation! The tool separated out which internet expenses I could deduct for my freelance work versus my main job. Turns out I can deduct about 30% of my internet costs based on my usage patterns for my side business. It also found some home office deductions I wasn't taking advantage of for the freelance portion. Definitely made tax season less stressful knowing exactly what I can and can't claim.
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Miguel Ramos
19 After trying to call the IRS for THREE DAYS straight with questions about home office deductions (I kept getting disconnected), I finally used Claimyr (https://claimyr.com) and it was a game-changer. They got me connected to an actual IRS agent in about 20 minutes when I was previously waiting for hours. The IRS agent confirmed what others have said - W-2 employees can't deduct home internet anymore at the federal level. But they also explained some nuances about state returns that were super helpful. If you need to talk to someone official about your specific situation, I'd definitely check out their service (they have a demo video at https://youtu.be/_kiP6q8DX5c). Saved me so much frustration!
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Miguel Ramos
•11 How does this even work? The IRS phone system is notoriously awful. Are they somehow jumping the queue?
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Miguel Ramos
•21 This sounds like BS. Nobody can get through to the IRS faster. They probably just keep you on hold and charge you for waiting.
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Miguel Ramos
•19 They use an automated system that navigates the IRS phone tree and waits on hold for you. When an agent finally picks up, you get a call connecting you directly to that agent. So yes, they're basically waiting in the queue for you, but you don't have to sit there listening to hold music for hours. No, they're not charging you for waiting time - you just get notified when an agent is actually available. It saved me literal days of frustration. I was skeptical too before I tried it, but when you've been disconnected multiple times after waiting for hours, you get desperate for alternatives.
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Miguel Ramos
21 I need to eat my words about Claimyr. After being super skeptical (I was the one calling BS), I got desperate trying to resolve an issue with my tax transcript and gave it a shot. To my complete surprise, I got connected to an IRS agent in about 35 minutes when I had previously wasted entire afternoons on hold. The agent answered my questions about home office deductions and confirmed the internet situation everyone's been discussing. They also helped resolve my transcript issue which was the main reason I was calling. Definitely changed my opinion about the service. When you value your time, sometimes it's worth trying something new.
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Miguel Ramos
7 Have you asked your employer about reimbursement? My company gives us $50/month toward internet since they made us permanent remote. Worth checking your company policy or asking HR.
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Miguel Ramos
•1 I actually haven't thought to do that! Good idea. I'll check with HR to see if they have any kind of stipend program. $50/month would cover a good chunk of our bill.
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Miguel Ramos
•7 Glad to help! Many companies have added these benefits since the pandemic but don't always advertise them well. Some even have separate allowances for internet, home office furniture, or general WFH expenses. Definitely worth a conversation with HR!
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Miguel Ramos
5 Does anyone use TurboTax for figuring this stuff out? I'm self-employed and use my internet for work but never sure how to calculate the percentage.
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Miguel Ramos
•15 I use TurboTax Self-Employed and it walks you through the calculation. They recommend tracking hours of business use vs. total hours, or splitting it based on devices (like if 2 of 5 devices are business-only). Most people I know just use a reasonable percentage like 50% if they work full-time from home but also use internet for personal stuff.
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Miguel Ramos
•5 Thanks! The hours method sounds complicated but the device method might work for me. I have a dedicated work computer so I could probably justify around 30-40% business use.
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