Can I deduct my internet bill working from home as a W-2 employee in 2025?

No, W-2 employees cannot deduct internet costs on their federal tax return for tax years 2018–2025. The Tax Cuts and Jobs Act (TCJA) suspended the miscellaneous itemized deduction for unreimbursed employee expenses, which previously allowed employees to deduct work-related internet costs on Schedule A (subject to the 2% AGI floor).

What you can do instead:

• Ask your employer for reimbursement: Under an accountable plan, your employer can reimburse your internet expenses tax-free. Many companies have adopted remote work stipends ($50–$150/month) since 2020. These reimbursements are not taxable income to you and are deductible for the employer — it's a win-win.

• Check your state tax return: Several states did not conform to the TCJA's elimination of this deduction:
• New York: Allows unreimbursed employee expenses on Form IT-196
• California: Allows on Schedule CA
• Pennsylvania: Allows unreimbursed business expenses
• Minnesota, Alabama, Arkansas, Hawaii: Also allow similar deductions

• If you have self-employment income: If you have a side gig or freelance work in addition to your W-2 job, you can deduct the business-use portion of your internet on Schedule C. You'd calculate the percentage of time your internet is used for business vs. personal use.

When the TCJA expires (after 2025), the unreimbursed employee expense deduction may return — but Congress would need to let the provisions sunset without extension.

Documentation tip: Even if you can't deduct it now, keep records of your internet expenses. If the law changes or you transition to self-employment, having a history of these costs will be valuable.