Job Expenses: Menu Path:
Deductions/Credits > Other Deductions/Credits > Employee Business Expenses
Business Expenses: Menu Path:
Income > Business / Rental Income > Business Income (Schedule C)
Cell phone costs are only deductible if related to your job or business.
Job-related expenses are entered on the
Employee Business Expenses screen. Business expenses are entered on the
Business Expenses screen.
The job-related expenses deduction applies only to
certain types of employees.
In order for job-related cell phone expenses to be deductible, the following must be true:
- The cell phone must be used for the convenience of your employer, which means that your use of the equipment satisfies a substantial business need of your employer.
- The cell phone must also be required as a condition of your job, which means, you cannot properly do your job without it.
The IRS strictly interprets these rules.
If you meet those two requirements, then you also have to be able to show that the cell phone was used more than 50% of the time for your job.