Phone Expenses

Long distance phone calls related to business, investments, rental properties, or your job are deductible. The basic costs of the first phone line in a residence are considered personal and are not deductible. However, a second phone line or additional telephone services on the first line, such as call waiting, may be deductible expenses.

Job-Related Expenses: Menu Path: Deductions/Credits > Other Deductions/Credits > Employee Business Expenses

Business Expenses: Menu Path: Income > Business / Rental Income > Business Income (Schedule C)

Rental Expenses: Menu Path: Income > Business / Rental Income > Rental Income (Schedule E)

In order to deduct cell phone expenses, the following must be true:

1. 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.
2. 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.

The job expenses deduction applies only to certain types of employees.