Internet & Phone
Business portion of internet and cell phone bills.
Tax Form
Schedule C, Line 25
Estimated Savings
$300-1,500/year
How It Works
You can deduct the business portion of your internet and cell phone expenses. Since most creators use these services for both business and personal use, you must calculate the business use percentage and deduct only that portion. The IRS requires reasonable allocation between business and personal use.
IRS Rules & Requirements
- Only the business-use portion is deductible
- Must reasonably estimate business vs personal use percentage
- Cannot deduct 100% unless used exclusively for business
- Keep records supporting your business use allocation
- Second phone line used only for business is 100% deductible
Real Examples
Internet bill $100/month, 60% business use = $720/year deduction
Cell phone $80/month, 70% business use = $672/year deduction
Dedicated business phone line = 100% deductible
Common Mistakes to Avoid
- Deducting 100% when also used personally
- Not documenting business use percentage
- Forgetting to deduct internet when working from home
- Not keeping monthly bills as records
Pro Tip
Review your actual usage - if you stream, upload videos, or do video calls for business, your internet business use percentage may be higher than you think. Document how you calculated your percentage.
Related Deductions
Home Office (Simplified Method)
Claim $5 per square foot of dedicated workspace, up to 300 sq ft.
Home Office (Regular Method)
Deduct actual expenses: rent, utilities, insurance, repairs based on office square footage.
Computer & Laptop
Computers, laptops, and peripherals used for content creation and editing.
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