Is an External Monitor Tax Deductible? Yes — Here's How to Claim It
100%
Deductible
Line 13
Schedule C
Depreciation (Section 179)
Category
$150–$600
Typical cost
External monitors used for business work are fully tax-deductible as equipment expenses on your Schedule C. You can claim the entire cost immediately under Section 179 expensing, rather than depreciating it over several years. This applies whether you're a freelancer, self-employed professional, or single-member LLC running a home or office-based business.
Who qualifies?
You qualify if you're self-employed (sole proprietor, freelancer, or single-member LLC filing Schedule C) and use the monitor exclusively or predominantly for business purposes. Business use means client work, professional services, digital content creation, consulting, or any income-generating activity.
How to claim it
- 1 Calculate the total cost of the monitor(s) purchased and placed in service during the tax year
- 2 Complete IRS Form 4562 (Depreciation and Amortization), Section II, to elect Section 179 expensing
- 3 Transfer the Section 179 deduction amount to Schedule C Line 13, and include the total as part of your cost of goods sold or operating expenses
Pro tip
Purchase and set up your monitor before year-end to claim it in the current tax year—monitors must be placed in service (actively used for business) to qualify. If you buy multiple monitors for a multi-monitor setup, each qualifies separately as long as total Section 179 deductions don't exceed the annual limit ($1,160,000 for 2023).
Source: IRS Publication 946: How To Depreciate Property
Judy automatically tracks External Monitor
Connect your business bank account and Judy categorizes External Monitor charges to Depreciation (Section 179) (Line 13) — no spreadsheets, no manual entry. Get a free 30-day audit first, then subscribe.
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