Can I Deduct Internet and Phone Bills as a Freelancer?

You can deduct the percentage of your phone or internet bill that's used for business. The IRS wants a reasonable estimate — not a logbook of every minute. If your internet is 70% client work and 30% personal browsing, deduct 70% of the bill.

• Hours-based: business hours / total connected hours per week
• Usage-based: data used for client work / total data
• Reasonable estimate: 'My freelance work fills 8 hours/day; personal use averages 2 hours/day → 80% business'
• Document the reasoning briefly in case you're audited

Most freelancers can defensibly claim 50-80% of their phone bill as a business deduction. If your phone is your primary client communication tool — calls, texts, email, two-factor codes — 70% is a reasonable middle ground. Document briefly: 'Used primarily for client communication; estimate 70% business.'

100% business phone is hard to defend unless you have a separate personal phone. Stick to 50-80% on a single shared device.

Home internet is more flexible. If your home is your primary place of business and internet is essential to your work, claiming 80-100% is defensible. If you have a small household and rarely stream personal media, you can claim up to 100%. Larger households with significant streaming/gaming should claim 50-70% to be safe.

A short paragraph in your records is enough: 'Internet is essential to my freelance work (file uploads, video calls, research). I work 8+ hours daily. Personal use is minimal — checking email, occasional streaming. Estimated 80% business use.' Keep this with your tax records each year.

The IRS won't typically audit just over phone/internet percentages. If a broader audit happens, they want to see your reasoning — not minute-by-minute logs. A written percentage rationale, paired with bank statements showing the bill, is usually all that's needed.