📱 INTERNET & PHONE · 2026

Can Freelancers Deduct Internet and Phone?

Q: Can freelancers deduct internet and phone bills?

Yes — at the business-use percentage for each. Internet and phone are typically deducted as two separate line items on Schedule C, with their own business-use percentages and substantiation. The deduction reduces both federal income tax and the 15.3% self-employment tax. A dedicated business line for either is fully deductible because there is no personal use to subtract.

Q: Should I deduct internet and phone separately or together?

Either approach works because they end up in the same place on Schedule C (utilities or office expense). What matters is that the business-use percentages are honest and the dollar totals come from the actual bills. Many freelancers find it easier to think of the two together because the recordkeeping habits and percentage logic are similar.

Q: What if I take the home office deduction?

Under the simplified home office method, the $5-per-square-foot rate already bundles utilities including internet — do not deduct it separately. Phone is its own Schedule C line and is deducted at the business-use percentage even under the simplified home office method. Under the actual-expense home office method, internet is part of the utilities allocation at the home office business-use percentage; phone remains separate.

Q: What's a typical business-use percentage?

Full-time freelancers commonly land at 50–80% for phone and 40–70% for home internet. The exact figure depends on household composition and your work style. Solo freelancers in single-person households can defensibly claim higher percentages; freelancers sharing the connection with family or roommates land lower. Whatever percentage you pick, document the reasoning.

Q: What records do I need?

Monthly statements for both internet and phone substantiate the dollar amounts. A brief written rationale for each business-use percentage substantiates the allocation. Keep records at least three years after filing.

Short answer: yes — both, at the business-use percentage for each. Internet and phone are two of the everyday subscription categories most freelancers underclaim because they assume "personal phone" or "shared family internet" means non-deductible. They do not — mixed-use is fully allowed at the business percentage. This 2026 guide handles them as the connected pair they functionally are, with combined recordkeeping and a unified rationale.

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Quick answer

Internet and phone are both deductible at the business-use percentage on Schedule C. The deduction reduces both federal income tax and the 15.3% self-employment tax. Most freelancers handle them as two separate line items (with separate percentages, since they often differ) but capture them together in their tracking workflow because the recordkeeping habits and percentage logic are similar.

Treat them as siblings, not twins

Internet usage tends to be more household-shared than phone usage. A typical freelancer might claim 70% on their cell phone and 50% on home internet — same logic, different percentages. Pick one rationale per service, document it once, and apply it consistently across the year.

How the business-use percentage works for each

Both services share the same underlying rule: deduct the percentage of the total bill that reflects actual business use. The honest percentage depends on your situation.

Cell phone. Personal use includes texting family, scrolling social media for entertainment, personal mapping, and the rest of normal phone life. Business use includes client calls, work email, business apps, scheduling, navigation to client meetings, and similar. Full-time freelancers commonly land at 50–80%.

Home internet. Personal use includes household members' streaming and gaming, your personal entertainment, and similar. Business use is your work hours plus business-related video calls. Solo full-time freelancers in single-person households commonly land at 50–70%; freelancers sharing the connection with family or roommates land lower.

Calculating the percentages

Two simple approaches produce a defensible figure. The time-based approach: estimate weekly business-use hours on each service and divide by total active hours. The activity-based approach: for phone, check screen-time reports for a representative week and total time in business apps versus personal apps; for internet, estimate which household members and devices account for what share of typical use, and apply your business-hour share. Either approach is acceptable; what matters is the rationale being honest and supportable.

Worked example: combined annual stack

A typical full-time freelancer's annual phone-and-internet deduction stack. Real numbers vary.

Service	Annual cost	Business %	Deduction
Cell phone plan	$1,200	70%	$840
Home internet	$960	50%	$480
Total	$2,160	—	$1,320

At a 22% federal bracket plus 15.3% self-employment tax, this $1,320 deduction saves about $494 in combined federal tax. Add a new $1,000 phone deducted at 70% ($700) and the stack jumps to $2,020 of deductions and about $755 of combined federal tax savings.

How home office interacts

This is the one place internet and phone diverge. Under the simplified home office method ($5 per square foot up to 300 square feet), the per-square-foot rate already bundles utilities including internet — do not deduct it separately on Schedule C. Phone is unaffected and remains its own Schedule C line. Under the actual-expense home office method, internet rolls into the utilities allocation at the home office business-use percentage; phone again remains separate.

Putting it concretely: under the simplified home office method, phone is the one you deduct separately; internet is bundled. Under the actual method, internet is allocated as part of utilities at the home office percentage; phone is allocated at its own phone-business-use percentage. Either way, do not double-deduct.

Devices and equipment

The phone hardware itself is deductible separately from the monthly plan, at the business-use percentage. A new $1,000 phone at 70% business use is a $700 deduction in the year of purchase, typically under the de minimis safe harbor (items under $2,500) or Section 179. The same applies to routers, modems, mesh-network gear, and similar internet hardware if you buy your own equipment rather than renting from the ISP.

Recordkeeping

Save monthly statements for both phone and internet.
Save a one-paragraph written rationale for each business-use percentage.
For shared household internet, document your share of the bill and the business percentage applied to that share.
Save device receipts and note the date placed in service.
Refresh the rationales if your situation materially changes (move, partner change, work-pattern shift).
Keep records at least three years after filing.

The hybrid path: paying for upgrades

Many freelancers find that the right answer is a hybrid setup that improves the math on both sides. A common pattern: keep one personal-friendly phone plan but pay for a separate eSIM business line on the same device, fully deductible at 100%. Or upgrade home internet to a faster business-grade tier specifically because client video calls demand the bandwidth, then defensibly claim a higher business-use percentage because the upgrade was business-driven. The category supports thoughtful structuring, not just splitting an existing bill at a guess percentage.

Worked examples

Solo full-time freelancer in a one-person household

$100/month phone plan at 75% business = $900 annual. $80/month internet at 65% = $624. New $1,200 phone purchased mid-year at 75% = $900. Total deduction: $2,424. At 22%/15.3%, saves about $907.

Freelancer in a three-person household sharing internet

$70/month phone at 60% business = $504. Internet allocation: household pays $90, freelancer's share is $30, business use is 60% of that share = $216 annual deduction. Total: $720. Saves about $269.

Part-time freelancer with W-2 day job

$60/month phone at 25% (mostly weekend client calls) = $180. Internet at 15% = $108. Total: $288. Small but legitimate; the recordkeeping is light, and the figure adds to a multi-category deduction stack.

Pick one path and apply it consistently. Some freelancers find combined deduction-tracking easier than separate; either is fine for the IRS as long as the numbers are correct and the substantiation is honest. The "do internet and phone get the same percentage" question is a no — they almost never do.

Common mistakes

Claiming 100% on mixed-use services. Allocate honestly; round numbers like 100% on a mixed-use service invite questions.
Forgetting to allocate shared internet. If you share the household bill, deduct your share at your business percentage, not the entire household bill.
Double-counting with home office. Internet under the simplified home office method is already bundled — do not deduct it again.
Using the same percentage for both. Phone and internet usage patterns differ; the percentages usually should too.
No written rationale. The math may be right, but the one-paragraph note supports it if anyone asks.
Skipping the device deduction. The hardware itself is deductible separately from the plan.

How phone and internet fit with other deductions

Phone and internet are two of the most under-claimed everyday categories because they feel personal. For where they sit in the broader picture, see the ranked best tax deductions for 1099 workers, the IRS-line-by-line freelance business expenses list, the plain-English what expenses can freelancers write off overview, and the tickable freelancer tax deductions checklist. If you also work from home, the home office deduction is the larger neighboring category, and the self-employed health insurance deduction is the biggest above-the-line move.

Frequently asked questions

Can freelancers deduct internet and phone bills?

Yes — both, at the business-use percentage for each. The deduction reduces federal income tax and the 15.3% self-employment tax. A dedicated business line is fully deductible.

Should I deduct internet and phone separately or together?

Either approach works. They end up in the same place on Schedule C. Many freelancers find combined recordkeeping easier because the habits and logic are similar.

What if I take the home office deduction?

Under the simplified method, internet is bundled into the per-square-foot rate. Under the actual method, internet rolls into utilities at the home office percentage. Phone remains its own line either way.

What's a typical business-use percentage?

Phone usually 50–80% for full-time freelancers; internet usually 40–70%. Pick what reflects your actual use and document the reasoning.

What records do I need?

Monthly statements substantiate the dollars; a brief written rationale supports the percentages. Keep records at least three years after filing.

The bottom line

Internet and phone together represent one of the most overlooked deduction stacks on a freelancer's return because both feel personal. Allocate each honestly, document the rationales once at the start of the year, and the deductions land automatically. A typical full-time freelancer captures $1,200–$3,000 of annual combined phone-and-internet deductions — $450–$1,100 of combined federal tax savings on bills that mostly already needed to be paid.

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Last updated: May 27, 2026. Disclaimer: Educational guide only. Not tax or legal advice. Confirm specifics with a licensed CPA or Enrolled Agent before filing.