As a freelancer or independent contractor, deducting phone and internet bills from your taxes can save you a significant amount of money, but many businesses don’t take full advantage of this deduction, and so don’t get all the savings they could. Save as much money as possible by learning what you can deduct and how.

When do internet and phone bills count as deductions?

Technically, you can claim deductions for your mobile phone, internet service, computer, and any other technology or devices you pay for—provided you use them for business operations. You don’t have to use these devices solely for your business, but if you don’t, you won’t be able to deduct 100% of the expense. Instead, you’ll generally deduct a percentage. 

Obviously, if you pay for an internet service at your business office, you can deduct 100% of that bill from your taxes. Likewise, if you buy a phone specifically for work and only use it for client and company calls, you can deduct the full amount of that phone bill. 

But let’s say that, in addition to using your phone to conduct business calls, you also use it to call your friends and family, surf the internet, and play Candy Crush. In that case, you can still claim your phone bill as a business expense. 

Simply specify which percentage of the time you use it for business, and that’s the amount you’ll be able to write off. For example, if 60% of your phone usage is work-related, and your phone bill is $100 per month, you can deduct $60 from your taxes. 

What about other examples?

There are other, less obvious expenses that also count. For example, if you pay for WiFi on a plane so you can work (or be available in case anything comes up for work), that counts as a business expense. 

Similarly, if you travel for work and end up spending more than you usually would on a phone bill due to roaming charges, long-distance calls, or hotspots, that counts as a business expense and is 100% tax deductible. 

What about TV? If you work for a news agency and pay for NBC so you can stay up to date, that counts as a business expense. Similarly, if you work in ads or video production, there may be certain TV bills you could write off, since you need to stay abreast of current commercials and video practices. But this only goes so far: if you work as an accountant, for example, you can’t write off a Disney+ subscription. 

Where do I deduct internet and phone bills?

Assuming you’re a freelancer or independent contractor, you’ll use Schedule C to report business income and expenses, which includes internet and phone bills. 

It’s important to have good documentation for these bills, but you don’t need to overthink it. Often, you can simply include a bank or credit card statement showing the charges.