SELF-EMPLOYED: 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. It is recommended you get an itemized phone bill, so you can measure your business and personal use and prove your deduction to the IRS. Alternatively, you could get a second phone number and use it exclusively for business.
To enter self-employed cell phone expenses:
- Type cell phone expenses, sch c in the search bar and click search.
- Click on Jump to cell phone expenses, sch c.
- On the Your XXX business, scroll
down to Business Expenses.
- Click on Other Common Business Expenses.
- Enter cell phone expenses under Communication.
EMPLOYEE: If you're working for someone as an employee, you may have to use your personal cellphone for business. If you itemize deductions, the IRS allows you to claim depreciation on your phone as an "unreimbursed business expense" if you use it regularly for your job and your use is a common, accepted business practice.
You can deduct unreimbursed business expenses that amount to more than two percent of your adjusted gross income. These expenses also include professional association dues, legal fees and others listed in 2016 Publication 529 - IRS.gov
To enter employee Job-related cell phone expenses:
- Type 2106 in the search bar and click search.
- Click on 2106.
- Enter your occupation.
- Continue with the onscreen interview, until you get to the Job-Related Expenses screen.
- Enter the Description and amount.
- Continue to the end of the section. See the screenshot below.
Additional information:
Can I deduct my home phone?
