Can I claim back the cost of my broadband connection?

Question

I have broadband at home and sometimes use it for research relating to my job as a physio (1-2 week). Can I claim back any of the cost of the Internet connection on my tax return?

Do you know what percentage I could claim back. Thanks :-)

Answer 1

If the job is a regular "W-2"-type job, then any unreimbursed job-related expenses can be written off on your Schedule A, but you don't get credit for the first 2% of your Adjusted Gross Income (the amount on the last line of page 1 of your 1040 or 1040A). So, unless your total unreimbursed job-related expenses are fairly high, it won't change your taxes.

If your job is self-employment, then you can write off any expense related to the business.

That being said, you can't write off a business expense that you would have had anyway if you didn't have a business. If you got broadband service for your business, and you use it sometimes for non-business stuff, then I'd write off the business percentage. If you already have broadband, and you pay so much per month for it, and the business use does not cause your bill to go up, don't write it off.

Summary: if the business usage of something you already own does not cause additional costs, then it can't be written off.

Another example of this is a cell phone. If you buy one for personal purposes, and then use it occasionally for business, you could write off the cost of the additional minutes or roaming charges or long-distance that you incurred because of business calls. But, if you pay one rate per month anyway and that doesn't change when you use the phone for business, then you don't have a write-off. However, if the phone is a "business" phone, then you can write off all costs associated with it. If you occasionally use it for personal usage (please try not to use it for personal usage, it is better to have 2 phones), then subtract off a percentage of the costs equal to the percentage of non-business use.

Sorry for the bad news, but you don't want the first person telling you this to be the IRS tax auditor.

(after I wrote this, I realized you are from Australia...the tax laws there could be different than where I'm from, the USA)

Answer 2

1

Answer 3

When working out your deductions, only you can tell the percentage. Have a think about the amount of time you spent using your internet for work related activities.

You can claim up to 100% if that's what you used. Add up all your related costs and multiply by your percentage and that is your deduction, it would go under 'Other Work Related Deductions' in your tax return.

Answer 4

Hi
only if you use it for business/independent contractor status. My guess is if you are an employee probably not. But consult with a tax preparer or CPA sometimes they will awns er questions for free especially if you do your taxes with them.

Answer 5

Yes a portion of it you can.