1. PERSONAL FINANCE

Should Your Company Reimburse Work-From-Home Expenses?

Should Your Company Reimburse Work-From-Home Expenses?
 Updated 
Jun 28, 2025
Key Takeaways:
  • Some states require companies to cover employees’ work-from-home costs.
  • You may be eligible for reimbursement of phone, internet, and equipment costs.
  • There are other ways to save money on your home office expenses, including using refurbished equipment and exploring your options for phone and internet plans.

The COVID-19 pandemic had a sizable and long-lasting impact on the world. One major change for many people has been the rise of remote and hybrid work. 

It’s certainly gotten a lot easier to find remote or hybrid roles, and it’s worth considering the financial implications of this work style. For example, if you no longer have a long office commute every day, you might find it easier to pick up extra work hours and use the extra cash to pad your budget or facilitate a debt relief pay-off plan. 

Working from home, you may have noticed that some of your expenses (such as car maintenance, lunches, and business attire) have gone down. But expenses like utilities, computers, laptops, ergonomic office furniture, apps, software, and your phone or internet bill have likely increased. 

If you’ve transitioned to working from home some or all of the time, should your employer reimburse some of the expenses you incur to get your job done? In most cases, they aren’t required to—but that doesn’t mean you can’t find savings. 

In fact, working from home can save you money. Let’s explore a few ways to save money on work expenses while you’re being productive from the comfort of your own home. 

Most States Do Not Require Reimbursements

Most states don't have laws mandating that employers reimburse employees specifically for work-from-home expenses. However, if you earn minimum wage or close to it, your employer may be legally obligated to reimburse you under the federal Fair Labor Standards Act. The Act states that your employer can't require you to cover work expenses if doing so would reduce your earnings to below minimum wage.

A Few States That May Require Reimbursements

If you work from home in certain states, you’re in a different position. Your employer may be required to reimburse you for work-from-home expenses, no matter how much you earn.

Here’s a brief overview the requirements from a few of the states which mandate reimbursement:

  • California: Employers must reimburse their workers for “reasonable and necessary expenses” they incur while completing their job duties. This applies regardless of whether an employee’s expenses push them below the minimum wage.

  • Illinois: Reimbursement is required for “all necessary expenditures or losses” that an employee takes on, and that are “directly related to services performed for the employer.”

  • Montana: Employers must pay for any business expenses an employee pays as a direct consequence of their duties and responsibilities as an employee, or at the direction of their employer.

  • South Dakota: An employer is required to compensate employees for all they spend as a consequence of doing their job.

This is an area of law that often changes, so ask your HR team what your company’s policy is. If you don’t think it complies with state and federal law, you can also seek advice from an attorney in your area.

Types Of Reimbursable Expenses

Not all work-from-home expenses are reimbursable—your employer is likely not going to foot the bill for a new coffee maker, for example. The ones that are necessary for you to perform your job, however, may be. 

These can include:

  • Your phone and/or internet plan

  • Personal desktop or laptop computer

  • Teleconferencing software

  • Fax machines

Other expenses that are designed to make your working conditions easier and convenient often aren’t reimbursed. Some examples of these “nice-to-have” rather than “must-have” expenses include ergonomic chairs, higher-speed internet, and high-quality printers.

How To Save Money On Work-From-Home Expenses

Regardless of whether you’re receiving reimbursement from your employer, you have options  to manage your work-from-home expenses.

Shop around for essential services 

If you’re working from home, it’s a fair bet that you need internet and possibly phone service to do your job effectively. If it’s been a while since you shopped around with service providers to find the best price, make those calls. New customers often qualify for a money-saving deal in the first year—giving your household budget a temporary break.

Use space and furniture you already have 

It’s tempting to go out and buy a whole new suite of office furniture to make your work-from-home space really special, but repurposing existing furniture is a whole lot cheaper. Got a spare dining room table gathering dust in your attic or garage? That could be your new work desk. And instead of renting a co-working space, could you commandeer a guest room during the day?

Alternatively, buy used

If you lack office furniture, that doesn’t mean you need to buy it new. Check out yard sales or thrift stores in your area, Facebook Marketplace, or Craigslist. Sourcing used electronic equipment like laptops or printers can also save you a bundle. You might consider looking into certified refurbished equipment. For example, Apple refurbishes and resells its own computers, and you can buy refurbished computers via the Outlet section of Best Buy’s website. 

Watch your utility costs

Working from an office often means you can keep your utility bills lower by turning down your heat or air conditioning before you leave for work (or programming a thermostat to do it for you). But if you’re working from home, you need your space to be comfortable all the time. 

Experiment with opening the windows and using blackout curtains to keep cool when you work from home in the summer, and look into space heaters (and yes, putting on a sweater—your dad was right) in the winter to moderate your heating or cooling. While you’re at it, sign up for budget billing, which makes your payment the same every month, making it easier to budget. 

Consider warehouse clubs

Depending on the type of supplies you use for work (such as pens, sticky notes, or beyond), you might want to source them from a warehouse club store, like Costco, Sam’s Club, or BJ’s Wholesale. Sometimes these stores also have great deals on equipment like laptops or desk chairs. 

You pay upfront for a year of membership, but you could recoup that cost on a single purchase if you find a great deal on something you need to buy anyway. The benefits of membership usually include bulk savings on groceries and household items.  

Take Advantage Of The Financial Benefits Of Working From Home

Whether your employer reimburses work-from-home expenses or not, you have a great opportunity to take your budget by the horns if you no longer have the costs of commuting, work lunches, and maintaining an office-appropriate wardrobe. Just follow the above tips to ensure you’re not spending more than you need to in the course of working from home.

A look into the world of debt relief seekers

We looked at a sample of data from Freedom Debt Relief of people seeking the best debt relief company for them during May 2025. This data highlights the wide range of individuals turning to debt relief.

FICO scores and enrolled debt

Curious about the credit scores of those in debt relief? In May 2025, the average FICO score for people enrolling in a debt settlement program was 593, with an average enrolled debt of $26,333. For different age groups, the FICO scores varied. For instance, those aged 51-65 had an average FICO score of 589 and an enrolled debt of $28,538. The 18-25 age group had an average FICO score of 548 and an enrolled debt of $15,062. No matter your age or debt level, it's reassuring to know you're not alone. Taking the step to seek help can lead you towards a brighter financial future.

Credit card debt - average debt by selected states.

According to the 2023 Federal Reserve Survey of Consumer Finances (SCF) the average credit card debt for those with a balance was $6,021. The percentage of families with credit card debt was 45%. (Note: It used 2022 data).

Unsurprisingly, the level of credit card debt among those seeking debt relief was much higher. According to May 2025 data, 88% of the debt relief seekers had a credit card balance. The average credit card balance was $16,327.

Here's a quick look at the top five states based on average credit card balance.

StateAverage credit card balanceAverage # of open credit card tradelinesAverage credit limitAverage Credit Utilization
District of Columbia$15,7897$24,10286%
Arkansas$14,2169$28,79178%
Oklahoma$14,1589$27,26178%
Alaska$19,3158$25,73177%
Ohio$15,3978$26,15677%

The statistics are based on all debt relief seekers with a credit card balance over $0.

Are you starting to navigate your finances? Or planning for your retirement? These insights can help you make informed choices. They can help you work toward financial stability and security.

Tackle Financial Challenges

Don’t let debt overwhelm you. Learn more about debt relief options. They can help you tackle your financial challenges. This is true whether you have high credit card balances or many tradelines. Start your path to recovery with the first step.

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Author Information

Ashley Maready

Written by

Ashley Maready

Ashley is an ex-museum professional turned content writer and editor. When she changed careers, she was finally able to focus on turning her financial situation around. She went from deeply in debt to homeowner in two years. Ashley has a passion for teaching others about better living through better money management.

Frequently Asked Questions

Can I write off my home office on my taxes?

Only if you're self-employed. Employees who work from home aren't eligible for the home office deduction, per the IRS. If you're a small business owner, speak to a qualified tax professional to find out how you can deduct work-from-home expenses. 

What’s the #1 rule of budgeting?

Spend less than you earn. 

Can a budget app help me save money?

Yes, budget apps could help you save money by helping you create a budget and track your spending and income. Popular budget apps include Goodbudget, PocketGuard, EveryDollar, MoLO, and YNAB.