QUESTION

Can you deduct a coworking space if you also work from home?

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Asked May 29, 2026
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Answer95% confidence

Yes — if you’re self-employed or an independent contractor, you can generally deduct a coworking space even if you also work from home, as long as the expense is ordinary, necessary, and used for business.

A few important points:

  • Self-employed / Schedule C taxpayers: Coworking fees are usually deductible as a business expense, often categorized as rent or office expense.
  • Home office deduction: You can also deduct a home office only if that space is used regularly and exclusively for business.
  • Principal place of business test: Your home office generally must be your principal place of business, or you must use it for administrative or management work and have no other fixed location where you do those tasks.
  • W-2 employees: Under current IRS rules, employees generally cannot deduct unreimbursed coworking or home office expenses on their federal tax return.

So the practical answer is: yes, both deductions can sometimes be claimed together, but usually only for self-employed taxpayers and only if the home office meets the IRS tests. Tax rules can change, so if you’re filing for 2026, it’s worth checking the current IRS guidance or a tax professional before claiming the deduction.