Internet Tax Write Off for Remote Workers | Allconnect

With the annual April 15 tax deadline fast approaching, you may be scrambling to find as many deductions as possible to lower your tax liability.  You use the internet to work from home, so that must be a deductible expense, right? Not so fast.The Internal Revenue Service (IRS) distinguishes between working from home and running a business from your home.One is deductible, the other is not.

Can I write off my internet bill if I work from home? If you work remotely for an employer, meaning you receive a Form W-2, you cannot deduct your internet bill.(Not to make you feel bad, but before 2018 when the laws changed, you could actually claim your internet costs.) However, if you are self-employed and run a business from your home or a freelance contractor, yes, you may deduct a portion of your internet expenses.When is my Wi-Fi bill nondeductible? You cannot deduct your internet bill when you work for someone who provides you with a W-2.

How to write off Wi-Fi for business To claim your Wi-Fi as a business expense, you must itemize your deductions rather than just file a regular income tax return.Remember, what you do for a living will also help the IRS determine if they accept your deductions.For instance, if you run a medical billing business from your living room, it’ll most likely be viewed as a legitimate workday expense.

However, if you’re a contract house painter, the IRS may question why you’d need internet access for eight hours daily.That said, you can deduct a home office and its expenses — like utilities — if you run your own business.Business Insider reminds you to consider only deducting part of those bills if you use them for business and personal use.

An example formula from FlyFin.tax to calculate your internet business use percentage is: 14 hours × 7 days/week = 98 hours 8 work hours/day × 5 working days = 40 hours 40 ÷ 98 = 41% business-use So in this example, you can write off 41% of your internet bill.“You have two options for how to deduct your internet bill, either as a home business tax deduction or separately on Schedule C,” shares FlyFin.“If you’re not taking the home office write-off, you’ll need to report your internet deduction on Schedule C and attach it to your Form 1040.” You can use Form 8829 to figure out allowable expenses on Schedule C.

Taxes are due April 15, 2025, but you can apply for an extension to October with the IRS by April 15.Written by: Robin Layton Editor, Broadband Content Robin Layton is an editor for the broadband marketplace Allconnect.She built her internet industry expertise writing and editing on the site since January 2020, as well as on Allconnect’s sister site MYMOVE.com… Read more Edited by: Anine Sus Editor I Read bio Related pages Business Internet Allconnect savings calculator What to read next Read more Featured How much should I pay for internet? Joe Supan — 11 min read Featured Everything you need to know about business internet Camryn Smith — 3 min read Featured How much internet speed do I need? Robin Layton — 8 min read Latest Thursday, February 27, 2025 Is my internet bill tax-deductible? Robin Layton — 2 min read Thursday, February 27, 2025 Celebrating Women’s History Month: Female leaders in broadband Camryn Smith — 8 min read Wednesday, February 26, 2025 What is symmetrical internet? Robin Layton — 3 min read