Quick answer
Yes. If you’re self-employed, you can deduct the business-use percentage of your cell phone plan, home internet and the phone itself. If you use your phone 60% for work, you deduct 60% of the bill.
A second phone or line used only for business is 100% deductible. The one exception: the basic service charge for the first landline into your home is never deductible, although business long-distance calls and a second business line are.
How to find your business-use percentage
The IRS doesn’t set a formula. It expects a reasonable, documented estimate. Common approaches:
- Track a typical month. Review a month of phone or data use and count business versus personal. Repeat a couple of times a year if your work changes.
- Time-based. For home internet, compare the hours it’s used for work with total household use.
- Device-based. If three people share home Wi-Fi and you’re the only one working from home, your share is lower than if you live alone.
Write down how you arrived at the number and keep that note with your tax records.
| Situation | Reasonable business % |
|---|---|
| Solo freelancer, internet mainly for client work | 60% to 80% |
| Household of four, one person freelancing | 25% to 40% |
| Phone used for client calls, messaging, 2FA and email all day | 50% to 70% |
| Separate business-only phone or line | 100% |
These ranges are illustrations. Use your own records.
What you can deduct
- Monthly cell phone plan (business %).
- Home internet (business %).
- The phone, tablet or laptop itself (business %). Items costing $2,500 or less can be deducted in full the year you buy them under the de minimis safe harbor. More expensive items can be written off immediately with Section 179 or bonus depreciation.
- Accessories: cases, chargers, headsets, a mobile hotspot (business %).
- Business apps and software: 100% if used only for work.
- Mobile hotspot or second SIM used only for work: 100%.
- Wi-Fi on business trips and coworking internet fees: 100%.
Cell phones haven’t been «listed property» since 2010, so you don’t need detailed logs of every call. You still need a reasonable basis for your percentage.
Worked example
Riley, a freelance copywriter, pays $85 a month for her phone and $70 a month for home internet. She lives alone and works from home. After tracking her use, she estimates 60% business for the phone and 75% for the internet. She also bought a $900 phone in March.
| Item | Annual cost | Business % | Deduction |
|---|---|---|---|
| Phone plan | $1,020 | 60% | $612 |
| Internet | $840 | 75% | $630 |
| New phone | $900 | 60% | $540 |
| Total | $1,782 |
At a 22% income tax bracket plus self-employment tax, that saves Riley about $640.
Where do you report it?
On Schedule C, phone and internet usually go on line 25 (utilities) or as «Telephone and internet» under Other expenses (Part V). The phone itself goes on line 22 (supplies) if deducted under the de minimis rule, or on Form 4562 if depreciated.
If you use the regular home office method, don’t also count internet as a home office expense on Form 8829. Claim it once.
Common mistakes
- Deducting 100% of a personal phone. Almost no one uses their only phone entirely for work.
- No backup for the percentage. Keep a note or a sample month of usage.
- Deducting the family plan. Only your own line’s business share counts, not your partner’s or kids’.
- Claiming the landline. The base charge of your first home landline is personal by law.
Frequently asked questions
Can I deduct my phone if I’m a W-2 employee who also freelances?
Yes, the business share related to your freelance work, on Schedule C. Unreimbursed use for your W-2 job isn’t deductible.
Should I get a separate business phone?
It makes recordkeeping simple (100% deductible, no percentage to defend) and keeps work and personal life separate. For many freelancers a second eSIM line is enough.
Can I deduct streaming services like Netflix?
Only if they’re genuinely required for your work (a film critic, for example), and then only the business share.
What if my business use changes during the year?
Use a weighted average for the year, or apply different percentages to different months. Just document it.
This article is general information, not tax advice. Consult a CPA or Enrolled Agent for your situation.
Sources
IRS Publication 334, Tax Guide for Small Business; IRS Publication 587, Business Use of Your Home (first residential phone line rule); IRS Notice 2011-72 on cell phones; IRS tangible property regulations and de minimis safe harbor. Example figures are FreelancerTaxHQ illustrations.