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LearnFAQSelf-Employed & Small Business

How much of my phone, internet, and software can I deduct?

Answer

You deduct the business-use percentage, not the whole bill, for mixed personal-and-business items. For a cell phone you use 60% for work, deduct 60% of the bill; same logic for home internet. Software and subscriptions used purely for business — accounting tools, design apps, project management, cloud storage — are typically 100% deductible. The cleanest approach is to make the line bright where you can: a second phone line or device used only for business is fully deductible and far easier to defend than estimating a percentage. For internet, base your percentage on a reasonable estimate of work versus personal use and keep a note of how you arrived at it. These small recurring deductions add up over a year, so capture them on a dedicated business card rather than reconstructing them at tax time.

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