Is Internet Service Tax Deductible? 2026 Guide

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Partially Deductible

Partially. You can deduct the business-use percentage of your internet bill. If you use your internet 60% for business, you can deduct 60% of the monthly cost.

IRS Form: Schedule C, Line 25

Conditions & Requirements

Must have a legitimate business use for internet service
Only the business-use percentage is deductible
Must reasonably estimate business vs. personal usage
Cannot deduct 100% unless the connection is used exclusively for business

What the IRS Says

The IRS treats internet service as a utility expense. When used for both personal and business purposes, you must allocate the expense based on the percentage of business use. There is no specific IRS form line for internet alone — it falls under utilities (Line 25) or other expenses (Line 27).

Documentation You'll Need

☑Monthly internet bills or annual summary from provider
☑Log or reasonable estimate of business vs. personal usage percentage
☑Business purpose documentation (client communications, cloud services, etc.)

Typical Deduction Amount

$600 - $1,200/yr

Estimated range for most freelancers and self-employed individuals

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Related Deductions

Is Home Office Deductible?

Yes, your home office is tax deductible if you use a dedicated space in your home regularly and exclusively for business.

Is Cell Phone Deductible?

Partially.

Is Software Subscriptions Deductible?

Yes, software subscriptions used for business are fully tax deductible.

Frequently Asked Questions

How do I calculate the business percentage of my internet?

Track your usage for a typical week, noting hours spent on business vs. personal use. If you work 8 hours a day and use the internet 2 hours personally, your business use is roughly 80%. The IRS accepts reasonable estimates.

Can I deduct internet if I work from home part-time?

Yes, but your business-use percentage should reflect part-time usage. If you work from home 3 days a week, your business percentage would be lower than a full-time remote worker.

Is a separate business internet line fully deductible?

Yes. If you have a dedicated internet connection used exclusively for business, 100% of that cost is deductible as a business expense.

TaxTidy provides expense organization tools based on the most current US tax law available to it. TaxTidy is not a CPA, Enrolled Agent, or licensed tax professional. All categorizations, deductions, and tax calculations are estimates. Please verify all data for accuracy and consult a certified tax professional before filing.

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