For rideshare drivers, delivery couriers, and remote freelancers, a phone and an internet connection are not optional. They are how you get the work in the first place. That makes them legitimate business expenses.
Unlike a dedicated business tool, though, your phone and home internet almost always do double duty for personal use, and that changes how much you can deduct.
Only the business-use share is deductible
If a single phone or internet plan covers both personal and business use, you can deduct the percentage that reflects business use. A freelancer who estimates that 60% of their phone use is for client calls, gig apps, and work email would deduct 60% of the monthly bill. A separate line or plan used only for business is generally fully deductible.
How to arrive at a reasonable percentage
There is no fixed rule, but the percentage should be based on something real, not a round guess. A few practical ways to estimate it:
- Review a typical month of call and data usage and note which was work-related
- For gig drivers, compare hours logged in to driving or delivery apps against total phone use
- For home internet, consider your working hours as a share of the hours the connection is actually used in your household
- Write down how you calculated it and keep a sample month of records as support
The phone itself, accessories, and apps
The device is equipment, so a new phone can be expensed or depreciated at its business-use percentage. Business-only expenses such as a car phone mount, a charger used for driving, or paid apps used only for work are generally deductible in full.
The first landline rule
One specific rule surprises people: the base cost of the first landline into your home is not deductible, even if you work from home. Long-distance business calls on it, or a second line used only for business, can be. This rarely matters anymore, but it is still on the books.
Do not double count with the home office deduction
Internet is not usually part of the home office deduction, which covers costs like rent, utilities, and insurance for the home itself. Claim internet once, as a separate business expense. If you use the regular home office method, make sure the internet bill is not also folded into your utilities total. A home office deduction calculator can help you keep the two separate.
This article is for general education only and is not tax or legal advice. Tax rules vary by jurisdiction, change over time, and depend on your specific situation. Talk to a qualified tax professional before making filing or payment decisions.