Checkmark iconCan I Write This Off?

can i write off internet

TL;DR

Internet expenses can be deductible if they are necessary for your business, but personal use must be excluded from the deduction.

Detailed Answer

Internet costs are deductible as a business expense if they are necessary and ordinary for your business operations. If you use the internet for both personal and business purposes, you can only deduct the portion attributable to business use. For example, if 70% of your internet use is for business, you can deduct 70% of the cost. It's crucial to maintain records that justify the business-use percentage. This deduction is not available for purely personal use.

Where to Put It on the Tax Form

Schedule C, Line 25 (Utilities) or Line 27a (Other expenses) for sole proprietors. For partnerships and corporations, it would be on the respective business tax return forms.

Real World Example

A freelance graphic designer who works from home and pays $100 per month for internet service can deduct $70 monthly if they determine that 70% of their internet use is for business purposes. This results in an annual deduction of $840.

Calculation Required

A calculation is required for this deduction.

To calculate the deductible amount, determine the percentage of internet use that is for business. Multiply the total internet cost by this percentage. For example, if your monthly internet bill is $100 and 70% is for business, your deductible amount is $100 x 70% = $70.

Audit Risk & Documentation Tips

Audit risk is moderate. Keep detailed records such as logs of business activities conducted online, invoices, and a documented method for determining the business-use percentage. Save all internet bills and any related contracts to substantiate the deduction.

IRS Reference

IRS Publication 535, Business Expenses.

Relevant Industries

FreelancersConsultantsOnline RetailersRemote Workers

Popular Related Pages

Related Questions

Disclaimer: This is for informational purposes only and should not be construed as tax or legal advice. Always consult your tax advisor.

Page created on January 27, 2026

Back to Search