Itemize Phone Contract For Free

If you bought the phone outright, you can't claim a deduction for the whole purchase cost, and if you're on a plan, you can only claim the portion of the bill that relates to work-related calls and data usage. It is important to know this when completing your online tax return, or tax filing.

Where to deduct your cell phone bills. As a freelancer or independent contractor, the IRS requires you to add Schedule C to your tax return. You'll use this form to report all your business income ? as well as any business expenses you write off, from your home office expenses to your cell phone bill.

However, you can't simply deduct the entire bill as a business expense (unless you have a separate line and device for business use only). You have to claim it based on how much is used for business versus how much use is personal.

The IRS allows you to write off certain equipment you use as a business expense. So, if you wish to deduct your iPhone 13 from your taxes, you can do so as long as you use your smartphone mostly for business. The IRS lets you deduct its purchase price and service fees.

Your cellphone as a small business deduction If you're self-employed and you use your cellphone for business, you can claim the business use of your phone as a tax deduction. If 30 percent of your time on the phone is spent on business, you could legitimately deduct 30 percent of your phone bill.

If your business views cell phones as a necessary business expense, then they would likely fall under the category of "communication expenses".

Your cellphone as a small business deduction If you're self-employed and you use your cellphone for business, you can claim the business use of your phone as a tax deduction. If 30 percent of your time on the phone is spent on business, you could legitimately deduct 30 percent of your phone bill.