Can I Write Off a Laptop for Work on My Taxes?

When considering if you can “write off” a laptop for work on your taxes, this generally refers to claiming a tax deduction for the cost of the equipment. A tax deduction reduces your taxable income, potentially lowering the amount of tax you owe. The ability to claim this deduction largely depends on your employment status and how the laptop is used. Understanding these distinctions is important for navigating federal tax rules.

Eligibility Based on Your Employment Status

Your employment status significantly affects whether you can deduct the cost of a work laptop. For most employees, federal tax law currently does not allow for such deductions. The Tax Cuts and Jobs Act (TCJA) of 2017 suspended miscellaneous itemized deductions for unreimbursed employee business expenses for tax years 2018 through 2025. This means if your employer does not reimburse you for a laptop, you cannot deduct its cost on your federal income tax return. These deductions are permanently disallowed for most workers after 2025.

While federal rules have changed, some individual states may still permit deductions for unreimbursed employee business expenses. These state-specific provisions vary widely and are separate from federal tax treatment.

The rules differ considerably for self-employed individuals, including independent contractors and small business owners. These taxpayers can deduct the cost of a laptop as a business expense. To qualify, the expense must be “ordinary and necessary” for their trade or business. An ordinary expense is one that is common and accepted in your industry, while a necessary expense is one that is helpful and appropriate for your business.

Understanding Business Use and Deduction Methods

For self-employed individuals, the amount of the laptop’s cost that can be deducted depends directly on its business use percentage. If a laptop is used for both business and personal purposes, only the portion attributed to business use is deductible. For example, if you use a laptop 80% for business and 20% for personal activities, you can only deduct 80% of its cost.

There are several methods for deducting the cost of a laptop for a self-employed individual. One common method is depreciation, specifically using the Modified Accelerated Cost Recovery System (MACRS). Under MACRS, the cost of the laptop is spread out and deducted over several years, rather than all at once. Computers and related equipment are generally classified as 5-year property under MACRS, meaning their cost is recovered over a six-year period due to half-year convention rules.

Alternatively, taxpayers may utilize the Section 179 deduction, which allows businesses to deduct the full purchase price of qualifying equipment, such as a laptop, in the year it is placed in service. For 2025, the maximum Section 179 expense deduction is $1,250,000, with a phase-out threshold of $3,130,000 if the total cost of Section 179 property placed in service exceeds this amount. The Section 179 deduction is also limited to the amount of business taxable income.

Another method is bonus depreciation, which permits a large percentage of the cost of eligible property to be deducted in the first year. For property placed in service in 2025, the bonus depreciation percentage is 40%. Unlike Section 179, bonus depreciation does not have an income limitation. Beyond the laptop itself, other associated expenses like business-related software, external accessories, and a portion of internet service costs can also be deductible.

Required Documentation and Reporting

Proper documentation is important for substantiating any business expense deduction, including a laptop. You should retain detailed records such as the original purchase receipt or invoice for the laptop. These documents provide proof of ownership and the cost incurred. If the laptop is used for both business and personal purposes, maintaining a log or other reliable evidence of the business use percentage is important.

For self-employed individuals, these deductions are typically reported on Schedule C (Form 1040), Profit or Loss from Business. If you elect to deduct the full cost using Section 179, it would generally be reported on Form 4562, Depreciation and Amortization, and then carried to Schedule C as an expense. If depreciating the laptop over several years using MACRS, the annual depreciation amount is also calculated on Form 4562 and then reported on Schedule C. Other related expenses, like software or internet, would be listed on appropriate expense lines within Schedule C.