Can Cell Phones Be Tax Deductible?
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.
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Depreciation Method
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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
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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.
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Reporting for Work Use
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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
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A cellular phone used as part of your own business is 100% deductible.
Reporting as Depreciation
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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
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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.
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