A Tax Deduction in your Hand… Literally.

With the proliferation of cell phones, and the corresponding accessibility of you to your employer, most employees are receiving and making business calls on cell phones. So, how can you deduct your cell phone expenses on your tax return? Here are some ideas and tips:

Expense Report

If you are an employee and use your phone regularly for work, then review your employer’s policies regarding the ability to expense part of the cost. If properly documented, the reimbursed business expense for phone use is not income to you. Not sure? Well, ask your employer. It never hurts to make a reasonable request.

Employee Benefit from using your cell phone

If you are required to be in touch with work, then ask your employer to consider providing a phone to you. It’s much easier to reduce your billing for personal use, than to eat the expense without a valid tax deduction.

Business Expense Versus Miscellaneous Business Deduction

As an employee with unreimbursed business use of your cell phone, the old tax rules allowed you to deduct unreimbursed business expenses in excess of 2% of your Adjusted Gross Income. Thankfully, business cell phone use as a sole proprietor is immediately deductible against revenue without the 2% threshold.

Keeping Records Just Got Easier with your cell phone.

Thankfully, recent changes in the tax code make cell phone documentation requirements much easier. You still need reasonable documentation to support the business use of your phone, but it is no longer such a painstaking activity.

Need Further Assistance?

Need a bit more guidance when it comes to tax deductions? Our tax professionals will work with you to address opportunities for tax savings. Get in touch with us online or give us a call at 407-644-5811 for more information.