Can Cell Phones Be Tax Deductible?

Your cell phone may be a tax deduction if you use it for work.

A personal-use cell phone cannot be deducted on your tax return; however, there may be work-related reasons that can be used towards a cell phone deduction.

Depreciation Method

A cell phone can be deducted using the depreciation method if it is used more than 50% of the time for work.

Rule for Work-Use Deduction

Your employer must require you to use the cell phone as a necessary part of your work and you must not be reimbursed for your usage.

Reporting for Work Use

The use of your cell phone as a non-reimbursed work expense would be reported on line 21 of the Schedule A: Itemized Deductions.

When Used for Self-Employment

A cellular phone used as part of your own business is 100% deductible.

Reporting as Depreciation

Because a cell phone has a life of more than one year, the purchase cost of the cell phone must be depreciated. Report it on line 13 of the Schedule C: Profit or Loss from Business.

Reporting as Utility Deduction

The monthly cost of a cell phone would fall under the utilities category of business expenses. This would be reported on line 25 of Schedule C: Profit or Loss from Business.

References

• Tax Form Processing LLC
• Internal Revenue Service
• Internal Revenue Service

Resources

• Internal Revenue Service
• Internal Revenue Service
• The Washington Post