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Is My Family Cell Phone Plan Tax Deductible?

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Is My Family Cell Phone Plan Tax Deductible?



Question: Is my family cell phone plan tax deductible

Answer: Yes, a portion of your bill is deductible.

The issue regarding the cell phone tax deduction family plan is a common tax question. For a business owner, sole-proprietor, or even for job-related expenses, the issue regarding your cell phone tax deduction family plan can be unclear because it is a shared plan between other people. To complicate matters further, not all of your portion may be for business-related purposes.

To identify your deductible portion, the IRS makes it clear that your deductible portion will be the relevant portion used for business-purposes. Therefore, your first step would be to determine which percentage of the shared family plan is yours. After you determine what percentage of the plan belongs to you, you must further estimated what percentage of your portion was for business purposes.

For example, if 25% of the shared plan belonged to you and you used your phone 50% for business, then 12.5% of the total shared family plan would be your deduction.

Of course the percentage cannot be perfectly precise as a portion of the plan may be based on data usage and you may not track every minute precisely for business/personal usage. But please use your best judgment in determining these break-downs for determining the cell phone tax deduction family plan.

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