Checkmark iconCan I Write This Off?

Can I write off my internet bill?

TL;DR

Yes, you can potentially write off your internet bill, but only if it's used for business purposes.

Detailed Answer

If you use your internet for business purposes, you may be able to deduct some or all of your internet bill. This is typically applicable for self-employed individuals or those who use part of their home for business. The IRS allows for the deduction of ordinary and necessary expenses for conducting a trade or business, and internet service can qualify as such an expense. However, if the internet is also used for personal purposes, you can only deduct the percentage used for business. For example, if you use your internet 50% for business and 50% for personal use, you can only deduct 50% of your bill. It's important to keep detailed records to substantiate your deductions in case of an audit.

Where to Put It on the Tax Form

Schedule C, Line 25 - Utilities

Real World Example

John is a freelance graphic designer who works from home. He uses his internet 80% of the time for business. His monthly internet bill is $100. Therefore, he can deduct $80 per month, or $960 per year, for his internet expense.

Calculation Required

A calculation is required for this deduction.

To calculate the deductible amount, you need to determine the percentage of time the internet is used for business, and then apply that percentage to the total cost. For example, if the internet is used 60% for business and the total cost is $1,200 per year, the deduction would be $720 (60% of $1,200).

Audit Risk & Documentation Tips

To minimize audit risk, keep detailed records of your internet usage and costs. This includes bills, receipts, and a log of your business usage. If audited, you will need to provide this documentation to the IRS.

IRS Reference

IRS Publication 535 (Business Expenses)

Relevant Industries

FreelancersSmall BusinessTelecommutersConsultants

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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 July 3, 2025

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