Your New Computer and Your Taxes: Deductions This Year

Three people bought a new laptop this year. One runs a small business out of her spare bedroom. One freelances on the side while working a full-time job. One is a W-2 employee whose company asked her to work from home two days a week. All three want to know the same thing: can any of this go on my tax return? The honest answer is that it depends less on the computer and more on who is buying it, and 2026 changed the calculus for each of them in a different way.

The biggest shift didn’t come from a new law written specifically about computers. It came from the One Big Beautiful Bill Act (OBBBA), signed in July 2025, which rewrote several rules that were originally set to expire or change at the end of 2025. Two of those rewrites matter directly here, and one of them overturns something taxpayers had been told to expect.

If You Own the Business

For business owners, the news is good, and it’s now permanent. Under the original Tax Cuts and Jobs Act (TCJA), 100% first-year bonus depreciation was always meant to be temporary. It was scheduled to step down to 80% in 2023, then 60%, then 40%, and it would have landed at a mere 20% for equipment placed in service in 2026 before disappearing altogether in 2027.

OBBBA scrapped that countdown. For qualifying property placed in service after January 19, 2025, 100% bonus depreciation is back and, this time, it isn’t on a timer. A computer purchased for a home office that qualifies as your “regular business establishment” can generally be written off in full in the year you start using it.

Section 179 expensing got a boost as well. For 2026, the deduction limit sits at $2,560,000, with the phase-out threshold starting at $4,090,000 in total qualifying purchases for the year. Most home-office setups fall nowhere near those ceilings, but if you’re also outfitting an office, replacing equipment, or making leasehold improvements, it’s worth knowing the room you have to work with.

If You’re Self-Employed and Studying to Stay Sharp

If you’re self-employed and use your computer for continuing education tied to your existing trade or business, you can still deduct operating expenses and depreciation on a computer used to complete coursework, prepare assignments, or otherwise maintain and improve skills you already use in your work. However, what doesn’t count is education that qualifies you for a brand-new trade or business, or that simply meets a minimum requirement to keep your credential.

If You’re a W-2 Employee, Here’s the Correction

This is where a lot of outdated tax advice is still floating around online. The original TCJA suspended the deduction for unreimbursed employee business expenses, the miscellaneous itemized deduction that used to let W-2 employees write off things like a home computer used for their job, for tax years 2018 through 2025. Because that was written as a temporary suspension, the expectation for years was that the old, more generous rules would simply come back on their own starting in 2026.

That didn’t happen. OBBBA kept the suspension in place. If you’re a W-2 employee, buying a computer for work still isn’t deductible on your personal return, and there’s no reason to expect that to change without new legislation. If your employer expects you to have a computer for remote or hybrid work, your best move is still the same one it’s been since 2018: ask about a stipend, an equipment allowance, or a formal accountable reimbursement plan, so the company covers the cost directly rather than you trying to claim it later.

The Expenses Around the Computer

For business owners and self-employed taxpayers whose computer use qualifies, the deduction rarely stops at the machine itself. Internet service, software subscriptions, a second monitor, a printer, and other equipment purchased primarily for business use can typically be deducted or depreciated alongside it. The catch is the same one that’s always applied: if the equipment or connection also gets used for streaming, gaming, or personal browsing, you need a defensible estimate of the business-use percentage, and records that back it up if the IRS ever asks.

The Takeaway

A new computer can be a significant tax advantage or a strictly personal expense, and 2026 tax updates have only made the distinction clearer. While business owners enjoy permanent, uncapped write-offs, self-employed professionals must remain diligent about educational expenses, and W-2 employees should look to their employers for reimbursement rather than expecting tax deductions. Because every financial situation is unique, it is crucial to understand how these changes apply to your specific purchases and business structure.

Don’t leave tax savings to chance. Contact our team today to review your setup and ensure you’re maximizing your potential deductions before you make your next purchase or file your returns.