Writing Off Cell Phone & Tech Expenses

In today's connected business environment, technology expenses—cell phones, computers, software, and internet—are essential costs that often qualify for tax deductions.

Cell Phone Deductions

If you use your cell phone for business, you can deduct the business-use portion. Self-employed individuals can deduct the business percentage of their phone plan. Employees generally cannot deduct phone expenses under current law (the TCJA suspended unreimbursed employee business expenses through 2025).

Computer and Equipment

Computers, printers, monitors, and related equipment used for business can be expensed under Section 179 or depreciated over time. If used partly for personal purposes, only the business-use percentage is deductible.

Listed property rules apply to computers, requiring documentation of business use. If business use falls below 50%, you must use straight-line depreciation.

Software Subscriptions

Business software subscriptions (accounting software, productivity suites, industry-specific tools) are generally deductible when paid if used for business. SaaS subscriptions are typically expensed immediately rather than capitalized.

Internet and Home Office

If you have a home office, you may deduct the business-use portion of internet service. For those without a qualified home office, only the clearly incremental business cost (like a business-only internet line) is deductible.

Documentation Best Practices

Maintain records of business use percentage—consider using time tracking or usage logs. Keep receipts for equipment purchases. Document the business purpose for each technology expense.