If I buy a cell phone to be used for work, can I write it off come tax season?

Answer 1

Generally no.

To deduct the cost of the phone, first you'd have to meet the test to show that you had a legitimate need to have the phone for business.

From publication 529:
Depreciation on Computers or Cell Phones
You can claim a depreciation deduction for a computer or cell phone that you use in your work as an employee if its use is:

For the convenience of your employer, and

Required as a condition of your employment.


For the convenience of your employer. This means that your use of the computer or cell phone is for a substantial business reason of your employer. You must consider all facts in making this determination. Use of your computer or cell phone during your regular working hours to carry on your employer's business is generally for the convenience of your employer.

Required as a condition of your employment. This means that you cannot properly perform your duties without the computer or cell phone. Whether you can properly perform your duties without it depends on all the facts and circumstances. It is not necessary that your employer explicitly requires you to use your computer or cell phone. But neither is it enough that your employer merely states that your use of the item is a condition of your employment.

Second, to claim the cost of the phone in one year, you'd have to show that you used the call more than 50% for business purposes. (Save the monthly billing statements.) If you do, the entire cost of the phone could be deducted on schedule A.

Third, using the monthly billing statements, you would pro-rate the cost to show how much were for business and how much was for work.

Let's say you make $10,000 a year. Your phone is 100% for work and costs you $200 to buy and $500 for the service plan. That's $700 in expenses. On the 1040 schedule A, you would deduct 2% of your AGI, so the $700 of expenses just dropped to $500. Then you add in everything else on your schedule A and if and only if, the the total is more than the standard deduction would you see your tax bill drop.

Lastly, the IRS routinely questions unreimbursed business expenses. This is to cut down on the fraud of people claiming they are using personal phones/computers for work.

Answer 2

1

Answer 3

Yvonne is wrong.

V.B. and Judy are right, if you have a regular phone in your home or you have a second cell phone for personal calls.

If the phone is the sole telephone in your home, then you may not be able to deduct it, even if otherwise eligible. By law, the "first" telephone line in a residence is never deductible. This law predates the practice of having a cell phone and no regular phone; you do not want to get into a legal fight about whether it applies to cell phones in houses without regular phones.

Answer 4

If your employer requires you to have it, and doesn't reimburse you for it, and you use it exclusively for business, you can deduct it if you itemize as an unreimbursed employee business expense. You'd have to subtract 2% of your adjusted gross income (AGI) from your total unreimbursed employee business expenses, then you could deduct the rest.

So in reality, the answer is probably no.

Answer 5

Yes, as long as they are incurred in the normal and necessary function of a business. You cannot wirte off personal checking account fees.

Answer 6

Yes, along with all the business calls you make on it.