Tax Deductions for Mobile Phone Expenses
You can claim a deduction for the business portion of your mobile phone expenses. This includes the monthly fee, calls, texts, data usage, and a percentage of the purchase price if used for business. The deduction amount depends on the extent it is used for business versus personal. Those who are self-employed or use a personal phone for work may be eligible. However, different countries have different regulations, so check with your local tax authority.
How much of your phone can you claim on tax?
If you’re self-employed and use your phone for business, you may claim a tax deduction. The deduction depends on the percentage of business versus personal use. For example, if 30% of your time on the phone is for business, you can deduct 30% of the costs.
Costs you can potentially deduct include:
- A portion of monthly service fees
- Business-related calls and texts
- A percentage of the phone’s purchase price, if under $300
- Depreciation over 3 years for phones over $300
You must keep records showing your business usage, such as a representative 4-week period. If total claims are $50 or less, records may not be required.
Can I deduct my cell phone on my taxes?
You can claim a deduction for the business portion of your mobile phone expenses if self-employed or use a personal phone for work. Costs potentially deductible include monthly fees, business calls/texts, and phone purchase depreciation. However, deductions depend on the percentage of business versus personal use.
For example, if 30% of your phone use is business-related, you may deduct 30% of costs. You must keep records, like a 4-week call log, showing your percentage of business usage. If total claims are under $50, records may not be required.
Regulations differ internationally. Consult your local tax authority for accurate information before claiming deductions. Phones under $300 can get a one-time deduction for the business use percentage of the purchase price. Phones over $300 deduct purchase price depreciation over 3 years.
The same principle applies to vehicle lease or loan payments. You cannot deduct entire payments, but can deduct the business use percentage.