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?
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.