Where do I put my internet connection on form 1040 for 20006?

Question

I'm self employed and I am taking some business expenses, where do I put my internet connection? Do I put it on form 8829 under UTILITIES and bunch it with my electricity cost?

Or on form SCHEDULE C "profit or loss from business" under utilities?

My connection is used solely for business & research so schedule C it is. THANK YOU!

Answer 1

Since you are self-employed, your internet service is reported on Schedule C.

You will need to determine how much of your internet time is related to business. The total amount paid times the business use percent will give you the deductible amount.

Form 8829 would not be used for this expense. 8829 is to allocate total household expenses (heating, mortgage interest, etc.) to a home office. Since the business use percentage of your internet is not related to the size of your home to home office, it would not be an 8829 item.

Answer 2

If it is related to Home Use for business, then put the Internet Charges on line 21 of Form 8829.

Answer 3

The internet connection is a service. It's not in the same rank as electricity, water and gas. Put it on schedule C.

Remember that you can only claim the business use portion.

Answer 4

It would go with telephone or computer expenses. Depends on whether you file Schedule C or not If not, it goes on Form 2106 and only those employee business expenses above 2% AGI are deductible.

Answer 5

20006? Wow!