Are Co-Working Memberships Tax Deductible?

First, a disclaimer. We are not licensed tax professionals. Please enlist the help of a a registered tax accountant if you’re uncertain about anything. This is only a guide. 


You’ve finally waken up from your holiday food coma and a champagne-laden New Years Eve and *POOF*—It’s tax season again! Suddenly you’re drowning in “R2D2s”, “4WDs”, and other, seemingly arbitrarily-named, tax documents.


In the effort of trying to get those sweet, sweet deductions, you might wonder, “Is my coworking membership tax deductible?” 


The simple answer is, “Yes.” 


But don’t get TOO excited just yet. The complexity of this depends on several other factors, particularly whether you fall in the category of being self-employed, or whether you’re employed by a company, so we’ll briefly cover both.


Freelancers/Solo Entrepreneurs


If you’ve been in the game for a while, you’re probably familiar with the Schedule C form. If not, the Schedule C form (1040) is where you report your business’ income or loss. Line 20 is where you’ll specifically put the cost of your coworking membership dues for the tax year. 


Remote Workers/Digital Nomads


If you’re employed by a company, you can only deduct your coworking membership if  the expense exceeds 2% of your gross income. This is deducted on the Schedule A form—the form where all of your itemized deductions will go. However, it’s unlikely that you will be able to deduct as much for the cost of your membership as an independent freelancer on entrepreneur. 


For both Freelancers and Remote Workers—if you also work from home part of the time, you’re going to want to consult a tax professional to determine whether you qualify to deduct both a coworking membership and your home office area. 


Want to try out coworking?


In this new future of work, COMMON Workspace offers a focused, quiet atmosphere that is prepared with all of the tools and supplies you need to make the most of your workday. Memberships also includes amenities like printing; access to conference rooms; kitchen areas stocked with snacks, coffee, and beers; parking; and even space to store your bike! Schedule a tour to come and see if COMMON Workspace is the right workspace community for you.