Taxorly AI Tax Advisor
Answered May 14, 2026
Yes, you can likely deduct portions of your internet and phone bills as a freelancer, but **not the entire amount** unless exclusively used for business. Here's a breakdown:
* **Business Use vs. Personal Use:** The IRS requires you to only deduct the *business portion* of these expenses. If you use your internet/phone for both work *and* personal activities, you need to determine the percentage dedicated to your freelance business.
* **How to Calculate the Deduction:**
* **Directly Related:** If you have a separate phone *only* for your business, the entire bill is deductible. This is rare.
* **Proportional Allocation (Most Common):** Calculate the percentage of time/use devoted to business.
* **Example (Internet):** You use the internet 60% for client work and 40% for personal use (streaming, social media, etc.). If your total internet bill is $100/month, you can deduct $60 ($100 x 60%).
* **Example (Phone):** You estimate 30% of your phone usage is related to business calls, texts and client communication. If your bill is $80/month, you can deduct $24 ($80 x 30%). *Keep detailed records to justify this percentage.*
* **Acceptable Business Use:** Deductible usage includes:
* Client communication (calls, emails, video conferences)
* Research for your freelance work
* Online advertising/marketing
* Business-related software/services accessed via the internet
* **Recordkeeping is Crucial:** You *must* keep records to prove your business use percentage to the IRS. This can include:
* A log of business calls/online activities
* Screenshots demonstrating business use
* A simple written explanation of your calculation method.
* **Schedule C:** You'll deduct these expenses on Schedule C (Profit or Loss From Business) when filing your taxes.
⚠️ Disclaimer: This is for educational purposes only. Always consult a licensed CPA for personalized advice.