You can only deduct a phone bill to the extent that you can document business usage in the event of an audit
However, you can deduct the entire phone bill if it is dedicated solely for business.
If you use a s cell phone for the convenience of your employer, to deduct unreimbursed employee business expenses, you must
1. Have enough itemized deductions (ie. Medical, mortgage interest, property taxes, charitable giving, ect) to exceed your Standard Deduction.
2. If you itemize, your deduction is limited to the extent that it exceeds 2% of your Adjusted Gross Income.
So, you may not gain a tax benefit for this deduction due to the above limitations..
For example, if you itemize your deductions and your Adjusted Gross income is $50,000, 2% would equal $1,000.
You can only deduct the dollar amount that exceeds $1,000.
When you enter it, TurboTax will give the maximum benefit, if any.
Job-related expenses are reported on Form 2106 (Employee Business Expenses).
