Tax Write-Offs - How to Claim Your Phone On Your Taxes



Claiming your cell phone costs on your tax return can reduce your taxable income, resulting in a lower tax bill. From updating phone bills to tracking work-related minutes, find out what you need to know about deducting your cell phone expenses this tax season.

Identify Your Eligibility for the Deduction.

To be eligible for this deduction, you must use your phone for business purposes on a “regular and ongoing basis”. Ask yourself these questions: Do I use my phone solely for work? Do the costs of my cell phone relate to activities that make me money? Do I track my work-related minutes to ensure they meet the eligibility requirements? If so, you may be able to deduct some or all of your phone bills!

Gather Relevant Documentation. 

To get the most out of this deduction, it's important to properly document your claims. Collect all bills relating to cell phone use for the year, including carrier invoices and/or app receipts. Additionally, you must be able to provide a precise number of minutes used for business-related activities; tracking these activities will provide greater accuracy in regards to how much can be claimed.

Learn About Business-Use-of-Home Expenses.

Business-use-of-home expenses are those related to using a space in your home for work purposes. To qualify, the area of the house being used business must be exclusive to that purpose and can range from additional office equipment or furniture, cleaning services or supplies, utilities like electricity, gas or internet fees. When claiming business-use-of-home expenses as tax deductions, the usage needs to be taken into consideration with an appropriate ratio of home use versus business use.

Maximize Your Deductible Phone Usage Percentage .

To maximize your deductible phone usage percentage, consider tracking how often you use your phone for business purposes and how often it's used for personal activities. Take detailed notes about specific calls related to business versus those for personal matters, and track messages created or received on the device related to business versus non-business conversations. Additionally, examine if any additional charges such as equipment or data can be included in a deductible phone usage percentage.

Remain Vigilant of Updated Tax Laws and Protocols.

Staying vigilant of changes in tax laws and regulations is key to get the most from your deductions and credits. Cell phones, like many other technology costs, may be maintained as a deductible expense. However, governments are constantly refining their definitions of what qualifies as a business-related expense. To stay up-to-date and compliant, it's important to study any changes or updates in protocols related to filing taxes with deductibles for cellphone usage associated with business activities.

How Tax App can help

If you're looking to claim maximum deductions on your taxes, including phone expenses, it may be helpful to consider using Tax App Australia. Tax App can help you keep track of your expenses throughout the year, making it easier to accurately claim deductions come tax time.  With this app, you can easily track your phone expenses, as well as other expenses related to your work or business.

To get started, simply download the app and create an account. From there, you can begin inputting your expenses and tracking your deductions. 

If you have any questions or concerns about using the app or claiming phone expenses on your taxes, you may want to chat with our Accountants. They can help ensure that you're taking advantage of all available deductions and that you're accurately reporting your expenses.

Please note that the advice provided below is only intended to be general in nature and may not apply to your specific situation. It is important to consider your individual circumstances and seek professional advice when necessary.