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dorionf
New Member

1)where do i include my internet bill for the year 2)where do i Include my cell phone bill and expenses 3)where do i include my toll bills 4)Seems like no clear direction

I need specifics so I don't put the information in the wrong area, Thanks Frank.....
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Opus 17
Level 15

1)where do i include my internet bill for the year 2)where do i Include my cell phone bill and expenses 3)where do i include my toll bills 4)Seems like no clear direction

Internet and phone are clearly deductible business expenses if you have dedicated internet or phone service for work.  If you have a shared bill (personal and work) then there are two schools of thought.  One argument is that they are never deductible because they are usually flat rate services and your work use does not actually increase your cost, so nothing is deductible. The other school of thought is that you can deduct the percentage of work use, but only if you have detailed records that can prove the amount of work use -- details of call minutes and internet megabytes that you can assign to business or work purposes.  So they are not deductible for most practical purposes.

If you want to deduct these costs then they would go under unreimbursed work expenses on the deductions and credits page.  They go on form 2106 which is an itemized deduction subject to the 2% rule so your actual tax benefit will depend on your other tax situations.

If by tolls you mean toll calls (long distance), then any calls that are work related and that you are billed for specifically can be included as work expenses.  If by tolls you mean toll road fees for business travel, then tolls for your regular commute are never deductible.  Tolls for business transportation and travel are deductible if the travel itself is deductible under the rules in chapter 1 or 4 of publication 463.  They are deductible on top of your actual vehicle expenses using either the standard mileage rate or the actual expense method.  Tolls would be entered in the car and vehicle expense section of the work expenses interview.  After entering your mileage deduction there is an extra question about tolls and parking fees.  They also go on form 2106 and are subject to the same overall limits.

If you are self employed, the same general rules about deductibility apply, but the charges would be listed under vehicle expenses or office expenses on your schedule C.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

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3 Replies
Opus 17
Level 15

1)where do i include my internet bill for the year 2)where do i Include my cell phone bill and expenses 3)where do i include my toll bills 4)Seems like no clear direction

W-2 employee or self employed?
*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
VolvoGirl
Level 15

1)where do i include my internet bill for the year 2)where do i Include my cell phone bill and expenses 3)where do i include my toll bills 4)Seems like no clear direction

Those items are usually not deductible.
Opus 17
Level 15

1)where do i include my internet bill for the year 2)where do i Include my cell phone bill and expenses 3)where do i include my toll bills 4)Seems like no clear direction

Internet and phone are clearly deductible business expenses if you have dedicated internet or phone service for work.  If you have a shared bill (personal and work) then there are two schools of thought.  One argument is that they are never deductible because they are usually flat rate services and your work use does not actually increase your cost, so nothing is deductible. The other school of thought is that you can deduct the percentage of work use, but only if you have detailed records that can prove the amount of work use -- details of call minutes and internet megabytes that you can assign to business or work purposes.  So they are not deductible for most practical purposes.

If you want to deduct these costs then they would go under unreimbursed work expenses on the deductions and credits page.  They go on form 2106 which is an itemized deduction subject to the 2% rule so your actual tax benefit will depend on your other tax situations.

If by tolls you mean toll calls (long distance), then any calls that are work related and that you are billed for specifically can be included as work expenses.  If by tolls you mean toll road fees for business travel, then tolls for your regular commute are never deductible.  Tolls for business transportation and travel are deductible if the travel itself is deductible under the rules in chapter 1 or 4 of publication 463.  They are deductible on top of your actual vehicle expenses using either the standard mileage rate or the actual expense method.  Tolls would be entered in the car and vehicle expense section of the work expenses interview.  After entering your mileage deduction there is an extra question about tolls and parking fees.  They also go on form 2106 and are subject to the same overall limits.

If you are self employed, the same general rules about deductibility apply, but the charges would be listed under vehicle expenses or office expenses on your schedule C.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
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