Only self-employed remote workers can deduct home office furniture under U.S. tax law, not employees. Eligible deductions include desks, chairs, and equipment used exclusively for business. Choose between simplified or direct methods for deductions, with strict IRS rules requiring detailed records. Recent tax law changes may affect eligibility, so staying compliant is key.
Understanding Tax Deductions for Home Office Furniture
Since the Tax Cuts and Jobs Act of 2018, U.S. tax law has limited home office deductions to self-employed individuals, excluding employees working remotely for an employer. This shift, effective through at least 2025 unless Congress extends or amends the law, means that only those earning self-employed income—such as freelancers, independent contractors, or business owners—can claim deductions for home office furniture like desks, chairs, file cabinets, or computers. Employees, even those working full-time from home, cannot deduct unreimbursed expenses, including furniture, on their federal tax returns. Some states, however, allow deductions for unreimbursed employee expenses, so checking state-specific rules is advisable.
To qualify for the home office deduction, the IRS requires that a portion of your home be used “regularly and exclusively” for business. This means the space—whether a dedicated room or a defined area—must be used solely for your self-employed work and serve as your principal place of business, a place to meet clients, or for storing inventory. For example, a desk in a mixed-use living room typically doesn’t qualify, but a dedicated office space does. Furniture and equipment, such as a desk, chair, or printer, must be used exclusively for business to be deductible. If you’re both an employee and self-employed (e.g., running a side gig), deductions must tie directly to your self-employed income, not your employee work.
The IRS offers two methods for calculating home office deductions: the simplified method and the direct (or regular) method. The simplified method allows a deduction of $5 per square foot of your home office, up to 300 square feet, for a maximum of $1,500. This method is easier, requiring less record-keeping, and can include furniture costs as part of business expenses reported on Schedule C. The direct method, however, calculates the actual expenses of your home office, including a portion of rent, mortgage interest, utilities, and furniture costs, based on the percentage of your home used for business. For instance, if your home office occupies 10% of your home’s square footage, you can deduct 10% of eligible expenses, including the cost of a new office chair or desk. Furniture deductions under the direct method also allow depreciation for items used over multiple years, such as a computer or file cabinet, with a cap of $1,050,000 for qualified business equipment.
Eligible furniture and equipment must meet IRS criteria: you must own the property, it must be used to generate income, and it must have a useful life exceeding one year. For example, a $500 office chair purchased for your freelance business could be deducted fully in the year of purchase (via Section 179) or depreciated over its useful life. Items like home security systems or dedicated business phone lines may also qualify if they directly support your workspace. Maintenance costs, such as repainting your office or replacing a broken chair, can be partially deducted if they benefit your business space.
Accurate record-keeping is critical. The IRS requires detailed records, including receipts, invoices, and a log of business use for items like internet or phone lines shared between personal and business use. For instance, if 60% of your internet use is for business, you can deduct 60% of the bill. Schedule C (for business income) and Form 8829 (for home office expenses) are key forms for claiming these deductions. Failing to maintain records or misclassifying personal expenses as business ones can trigger audits, so compliance is essential.
Recent legislative changes, such as the extension of the Tax Cuts and Jobs Act under the “One Big Beautiful Bill” signed in July 2025, have not altered the core rules for home office deductions. However, updates to state and local tax (SALT) deductions and other provisions may indirectly affect self-employed workers’ overall tax strategy. Staying informed about IRS guidelines and consulting a tax professional can maximize deductions while ensuring compliance.
Employees seeking relief should explore employer reimbursements for home office furniture, as these are not taxable income. For self-employed individuals, strategic planning—such as choosing the direct method for larger deductions or investing in durable equipment—can optimize tax savings.
Disclaimer: This article provides general information based on current U.S. tax laws and IRS guidelines. Tax laws are complex and subject to change. Consult a qualified tax professional for personalized advice. Sources include IRS publications, TurboTax, Remote.com, and U.S. News.
