Is Home Internet Deductible?
In short: Yes, the business-use portion of your home internet is tax-deductible for 1099 workers based on how much you use the service for work.
Calculating Your Business-Use Percentage
To claim this write-off, you must determine what percentage of your total internet consumption is dedicated strictly to professional tasks rather than personal streaming, gaming, or browsing. You can calculate this by evaluating how many hours per week you spend on work-related tasks online versus personal use, or by allocating the expense through your dedicated home office if you utilize that specific deduction method. You cannot deduct the entire monthly bill unless the connection is used 100 percent for your trade with zero personal use.
Where to Report Internet Expenses on Schedule C
When filing your annual federal income tax return, self-employed individuals report this expense on Schedule C. Specifically, home internet costs are typically entered on line 25 for utilities or line 27a for other miscellaneous business expenses. Ensure you accurately segregate your internet service from your phone service if they are bundled on a single provider statement, as phone and data lines may sometimes require distinct tracking or categorization depending on your exact billing structure and usage patterns.
Keeping Records to Support Your Deduction
According to IRS Pub 535, taxpayers must maintain thorough records supporting the business-use split claimed on their tax return. Saving monthly billing statements and documenting how you arrived at your business-use ratio will protect your filing position if questions arise later. Keeping digital copies of your receipts and invoices organized throughout the year simplifies tax preparation and ensures you never miss a legitimate deduction when quarterly estimated tax payments or annual filings come due.
Related
What the Proofly receipt scanner does — and doesn’t
Does
- Reads merchant, date, line items, tax and payment method from a photo, with a confidence meter so you can correct it before saving
- Keeps personal and per-company receipts separate
- Maps business expenses to Schedule C lines (meals already at 50%)
- Exports an audit pack: every receipt image plus a ledger, as PDF, and CSV for QuickBooks or Xero
- Has a manual mileage log priced at the IRS rate for each trip’s date
Doesn’t
- File your taxes or give tax advice
- Sync live with QuickBooks or Xero (it’s CSV export)
- Pull transactions from your bank automatically
- Track your drives by GPS
- Guarantee how an audit turns out
Frequently asked questions
Can I deduct 100% of my home internet bill?
You can only deduct 100% of your bill if the internet connection is used exclusively for your business and has zero personal use by anyone in your household.
Which tax form do I use to deduct internet costs?
Internet expenses for self-employed individuals are reported on Schedule C, specifically on line 25 for utilities or line 27a.
What documentation do I need to keep for my internet deduction?
You should keep monthly service bills, proof of payment, and a written log or calculation showing how you determined your business-use percentage.
Does bundling internet with TV or phone affect my deduction?
Yes. If your bill includes personal services like television or entertainment packages, you must separate those costs and only deduct the business portion of the internet service.
Sources
This guide summarizes IRS guidance as of October 28, 2026 for planning purposes. It isn’t tax advice — confirm your situation with IRS.gov or a qualified tax professional.