Can you deduct coworking fees as an employee?

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Can you deduct coworking or shared-office membership fees on your tax return if you work remotely as a W-2 employee and pay out of pocket? How do rules change if you’re an independent contractor, if your employer reimburses you, or if the reimbursement is treated as taxable income? What kind of receipts or documentation are typically required and do common practices differ by country or tax jurisdiction?

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Anonymous 10 Aug 2025

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In some countries like Canada or the UK, remote work expenses including coworking fees might be deductible if they are necessary for your job and not reimbursed; check local rules.
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- Anonymous: Thanks for the info! Do you know if there's a specific form or section on the tax return for these coworking fees?
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Anonymous 11 Aug 2025

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I ran into this when I switched from freelance to a W-2 job. In the U.S. a regular employee generally can’t deduct coworking fees on a federal return since those miscellaneous employee deductions were largely eliminated after 2017. If you’re self employed the fees are a normal business expense and go on Schedule C. If your employer reimburses under an accountable plan it is not taxable and you don’t deduct it. If they add it to your paycheck as taxable income you usually can’t separately deduct it as an employee. Keep invoices, payment records, membership contracts and a calendar showing business use. Rules and paperwork differ by country and by state, so check local guidance.
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- Hailey Carson: Isn't it wild how the tax system silently nudges workers out of claiming real expenses? Big corporations thrive while us mere mortals are boxed in. Wonder if coworking fees get buried just to keep the freelance hustle under corporate radar?
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  Anonymous: Hey Hailey, totally feel you. The tax code's complexity definitely favors bigger players who can navigate or even influence it, while freelancers and regular employees get stuck with fewer benefits. Coworking fees are a great example—perfectly ordinary for the self-employed but mostly non-deductible for employees. It does make you wonder about the incentives set up in the system. Hopefully, awareness leads to policy changes down the line.
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Andrew Mcdonald 15 Aug 2025

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Just a quick nitpick: you mentioned "deduct coworking or shared-office membership fees," but technically, the IRS looks at whether those expenses are ordinary and necessary for your work. For W-2 employees in the U.S., since 2018, unreimbursed employee expenses like coworking fees generally can't be deducted on federal taxes due to changes from the Tax Cuts and Jobs Act.
Howeve if you're an independent contractor, these costs can usually be claimed as business expenses without issue. If reimbursement is treated as taxable income by your employer, it’s basically extra wages—so no separate deduction there either. Keep detailed proof—contracts plus payment records—to back up any claims especially if local rules differ internationally or state-wise.
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A. G. 28 Aug 2025

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If you're a W2 employee working remotely, coworking fees usually aren't deductible on your personal taxes in the U.S. because the tax law changed to limit those kinds of deductions
But if you’re an independent contractor, it’s diferent—you can write off those fees as business expenses since they directly relate to earning income. If your employer reimburses you but counts it as taxable income, that’s basically like getting paid extra, so you can't claim a deduction for the coworking space separately. Keep detailed receipts and contracts just in case—some states or countries might have exceptions or different rules on what counts as deductible work expenses
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Chloe Smith 30 Aug 2025

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Thinking about coworking fees and taxes brings to mind the principle of alignment between incentives and behaviors. When employers don't reimburse coworking expenses, employees might avoid such costs even if those spaces boost productivity, reflecting how economic incentives shape work habits. You might wonder: how does your company's culture around remote work support or discourage investing in these resources? Practically, if you pay out of pocket as a W-2 employee in the U.S., the inability to deduct these fees may prompt you to negotiate flexible work arrangements or stipends. Keeping thorough documentation remains key—this can be useful not only for potential future deductions but also when discussing benefits with your employer or tax advisor.
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Accepted Answer · 2025-08-13T00:19:34+00:00

If you’re a W-2 employee footing coworking fees yourself, those costs usually vanish into the abyss of non-deductible expenses on your federal return in the U.S. The Tax Cuts and Jobs Act pretty much wiped out unreimbursed employee business expenses for most folks. But here’s a twist: some states still allow deductions or credits for home office or remote work-related expenses, including coworking memberships, so it’s worth peeking at your state tax rules.

For independent contractors, coworking fees are typically straightforward write-offs as ordinary business expenses. If your employer reimburses you but tacks it onto your paycheck as taxable income, that muddies the water—you can’t double dip by deducting those same fees again.

Documentation? Keep everything—payment proofs, contracts showing membership terms, even emails confirming necessity of space usage. Outside the U.S., countries like Australia have their own quirks; often you need to prove direct connection to earning income plus reasonable allocation if you share space with personal use.

The key is knowing how local laws treat “necessary” versus “convenient” workspaces because that line shifts wildly depending on where you file taxes.