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A single Office 365 subscription apparently "covers the entire household": "You can each sign-in with your individual Microsoft accounts using your settings and accessing your documents, but you still need just one subscription".

I bought it with my account, hence I guess there should be some way to tell it which other accounts are part of my household, so that they can download it. However, I haven't found anything like that in the web interface. So, how do I install the copies for the rest of the family?

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Please refer to thefollowing link and look for the section called "Ability to use Office on up to 5 PCs or Macs shared among all users in the home"

Install Office 365 Home Premium on a family member's computer

Relevant:

1.

On the computer where you want to install Office, go to Office.com and sign in with your Microsoft Account.

2.

Now, anyone who uses this computer will have a full copy of Office. All they need to do is open an Office program and sign in with their Microsoft Account.

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Ok, I misread that article. The relevant part is: "Ability to use Office on up to 5 PCs or Macs shared among all users in the home". – o0'. Oct 15 '13 at 7:37
    
Edited the answer to include the section. – Supun Oct 17 '13 at 12:32
    
I've also added some bits which were the focus of my confusion. – o0'. Oct 17 '13 at 12:44

Apparently there is a confusion between installation and users for Home edition,especially on a Mac If there are are 2 users on a Mac, which forces the use of a different account,does that decrement your ability to use office on 5 computers by 2 or by one? On a pc that is not the case!

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This appears to be a comment not an answer to the author's question. Its safe to assume the author is not using an Mac, since they made no mention of it, and I don't believe Office 365 was even offered in 2013 on OS X. – Ramhound Jan 22 at 17:06

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