Is home internet tax deductible?
Internet is sometimes deductible when it’s used to earn income or run a business — but most plans are mixed-use, so allocation and documentation matter.
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On this page: Short answer · Who this applies to · When it's deductible · When it's not deductible · Home business deduction · Calculation methods · Example · Records · Related · FAQ
Short answer
Depends. Internet service may be tax deductible when it’s used for business or income-producing purposes and you can support the business-use portion.
If the internet plan is used for both business and personal reasons, you generally deduct only the business-use percentage.
Who this typically applies to
- Self-employed individuals and small business owners using internet to run their business
- Freelancers and contractors using the internet for client work, sales, and business operations
- People with side businesses who use internet access to earn income
Employees often have stricter limits on deducting unreimbursed internet expenses. Reimbursement policies matter.
When internet is tax deductible
- The internet is used for your business (client work, sales, operations, administration)
- You can reasonably allocate business vs personal use (especially for home internet)
- The expense is ordinary and necessary for your income-producing activity
- You keep bills/receipts and some support for how you determined the business portion
When internet is not tax deductible
- The internet is used only for personal purposes
- You cannot support business use or you don’t have a real income-producing activity
- The cost is reimbursed by an employer or client
- The expense is primarily for entertainment or personal convenience
Can I write off internet for my home business?
Yes. If you run a home business, you can typically write off the business portion of your home internet as a business expense.
How home business owners deduct internet
- Self-employed (Schedule C filers): Deduct internet as a utility expense on Schedule C, Line 25 (Utilities) or as part of home office expenses
- Business-use percentage: Calculate based on actual use (hours spent on business vs personal, or device allocation)
- Home office deduction: If you claim a home office using the simplified method, internet may already be partially covered; if using actual expenses, include internet in your utility calculations
Common scenario: You work from home full-time running an online business and use internet 8 hours/day for work, 4 hours/day personal = 67% business use. On an $80/month bill, you'd deduct approximately $53/month ($636/year).
How to calculate the internet tax deduction
There are several reasonable ways to determine your business-use percentage for internet expenses.
Common allocation methods
- Time-based: Track hours used for business vs personal over a representative period (e.g., business hours / total waking hours)
- Device-based: If certain devices are business-only, estimate the bandwidth or usage those devices represent
- Home office percentage: If you have a dedicated home office, some people use the same percentage as their home office square footage (though this is conservative)
Choose one reasonable method, document it, and apply it consistently. The IRS expects a logical approach, not perfection.
Example calculations
Example 1: Time-based allocation
- Freelance consultant works from home 40 hours/week on business
- Personal internet use (streaming, browsing): ~20 hours/week
- Business percentage: 40 ÷ 60 = 67%
- Monthly bill: $80 → Deductible amount: $53/month ($636/year)
Example 2: Conservative approach
- Home-based online store owner uses internet heavily for business but also for family Netflix/gaming
- Chooses conservative 50% business allocation to be safe
- Monthly bill: $90 → Deductible amount: $45/month ($540/year)
Being conservative is fine. The IRS doesn't require a perfect calculation, just a reasonable and supportable one.
What records to keep
- Internet bills or invoices (monthly statements)
- Proof of payment (bank/card records)
- A simple note explaining how you estimated business use (hours, devices, workspace)
FAQ
Can I write off internet for my home business?
Yes, if you run a home business, you can write off the business portion of your internet bill as a business expense on Schedule C. Calculate your business-use percentage based on hours, devices, or another reasonable method.
Is home internet tax deductible?
Home internet may be tax deductible when it's used for business purposes. If it's mixed business and personal use, you typically deduct only the business portion.
Where do I deduct internet on my tax return?
Self-employed individuals typically deduct internet expenses on Schedule C, Line 25 (Utilities) or as part of home office expenses. The specific line depends on whether you're using the simplified or actual expense method for your home office.
Can I deduct internet if I work from home?
Sometimes. Working from home alone doesn't automatically make internet deductible. Deductibility usually depends on business use, your work status, and whether you can support a business-use allocation.
Can employees deduct internet expenses?
In many cases, employees cannot deduct unreimbursed work expenses. If your employer reimburses you, you generally don't deduct the expense separately.
Looking for other deductible expenses? See the full Expense Deductibility Guide.
Last reviewed: January 30, 2026