Question

I have a question about a business phone tax deduction. My job requires that I have a cell phone. Would I qualify for a business cell phone deduction on my tax return?

Answer

To claim a business phone tax deduction you will need to determine the portion of the phone bill that relates to your business. To qualify for a business cell phone deduction both of these apply:

  • The cell phone plan is for the convenience of your employer.
  • The cell phone is a condition of your employment.

You can deduct charges for extra services beyond the base bill if they’re job-related expenses. You should keep records that show:

  • Amount of employee business expense
  • Time and place you incurred the expense
  • Business purpose of the expense

You can also take a depreciation deduction for the business-use portion of the cost of the cell phone.

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