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.

Related Topics

Related Resources

Tax Terms Explained: Tax Credits, Deductions, & Exemptions

Brush up on your tax vocabulary with the experts at H&R Block. We break down the definitions of tax credits, exemptions, and deductions.

Do I Need to File Taxes If I’m a Dependent?

Not sure if you need to file taxes if you’re being claimed as a dependent on someone else’s returns? Let H&R Block help you determine what you should do.

Filing Earned Income Credit (EIC) In Two States

If you're filing tax returns in two different states, how is your Earned Income Credit (EIC) figured? Learn more from the EIC tax experts at H&R Block

How Much Does Marketplace Health Insurance Cost?

If you are under 30 and no longer covered by your parents, consider looking into the cost of a catastrophic health insurance plan. Learn more at H&R Block.