Phone, Internet & Home Office Deductions

Phone, internet and home office are all deductible at their business-use share, not in full. Work out an honest percentage for the phone and deduct that portion; the same logic applies to internet. The home office is stricter — the space must be used regularly and exclusively for the business, which rules out the kitchen table, and the simplified method deducts $5 a square foot up to 300 square feet on Schedule C Line 30.

Every gig worker knows the mileage deduction — 76 cents per mile from July 1, 2026 (72.5 cents for miles driven January through June) is hard to miss. But most DoorDash, Uber, and Instacart drivers overlook three deductions they're already paying for every single month: their phone, their internet, and their home workspace. These aren't luxury write-offs — they're legitimate business expenses the IRS expects self-employed workers to claim.

How Much of Your Phone Bill Can You Deduct?

Your smartphone is your primary business tool. It runs the Lyft driver app, the Uber Eats delivery app, Google Maps, your mileage tracker, and every customer communication you send. The IRS lets you deduct the business-use percentage of your cell phone plan on Schedule C.

How to Calculate Your Business-Use Percentage

The IRS doesn't require an exact minute-by-minute log. A reasonable estimate based on your actual usage is fine. Most full-time gig workers can justify 60–80% business use. Part-time drivers who also use their phone heavily for personal might claim 40–50%.

Example: Your phone bill is $85/month. You estimate 70% business use (navigation, gig apps, customer texts, mileage tracking). Your annual deduction: $85 × 12 × 70% = $714.

What counts as business use: running delivery or rideshare apps, GPS navigation during trips, communicating with customers or support, tracking mileage, managing earnings, and checking schedules. What doesn't count: personal calls, social media, streaming, and games.

Phone Accessories and Equipment

Beyond your monthly plan, you can deduct phone-related purchases used for gig work. Dashboard phone mounts, car chargers, protective cases (your phone takes a beating on the road), and even the phone itself if you bought it primarily for work. These go on Schedule C as business expenses — no business-use percentage needed if the item is used exclusively for work.

⚠️ Keep your records: Save your monthly phone bills and receipts for accessories. If audited, you'll need to show the total bill and explain how you arrived at your business-use percentage. A weekly bookkeeping routine makes this painless.

Can You Deduct Your Internet Bill?

If you use your home internet for any aspect of your gig business — managing your Grubhub account, checking Amazon Flex blocks, tracking earnings, doing bookkeeping, or filing taxes — a portion of your internet bill is deductible.

The business-use percentage works the same way as your phone. Estimate how much of your internet usage is for business versus personal. For most gig workers, 25–40% is a reasonable and defensible claim. If you also run a side business from home (selling online, freelancing), that percentage could be higher.

Swipe to see the full table →

Monthly Expense	Annual Cost	Business %	Deduction
Cell phone plan	$1,020	70%	$714
Internet service	$720	30%	$216
Phone accessories	$65	100%	$65
Home office (simplified)	—	100 sq ft × $5	$500
Total annual savings			$1,495

At a combined self-employment tax and income tax rate of roughly 30%, that $1,495 in deductions saves you about $449 in taxes. That's real money from bills you're already paying.

Frequently asked questions

Can gig workers deduct their phone bill?

Yes. Self-employed gig workers can deduct the business-use percentage of their cell phone bill on Schedule C. If you use your phone 60% for gig work (navigation, delivery apps, customer communication), you can deduct 60% of your monthly bill.

Can I deduct my internet bill as a gig worker?

Yes, if you use your home internet for business purposes like managing gig app accounts, tracking earnings, bookkeeping, or filing taxes. You deduct the business-use percentage of your monthly internet bill on Schedule C Line 25 (Utilities) or as part of your home office deduction on Form 8829.

Do gig workers qualify for the home office deduction?

Yes, if you use a dedicated space in your home exclusively and regularly for your gig business — for example, a desk where you manage your delivery schedule, track earnings, and do bookkeeping. The simplified method lets you deduct $5 per square foot up to 300 sq ft ($1,500 max). The regular method uses Form 8829 to calculate your actual expenses.

Where do phone and internet deductions go on Schedule C?

Cell phone expenses for business use typically go on Schedule C Line 25 (Utilities) alongside other utility costs, though some preparers itemize them on Line 27b (Other Expenses) with the description 'Cell phone — X% business use'. Internet can go on Line 25 (Utilities) or be rolled into your home office deduction on Form 8829 (regular method). If you use the simplified home office method, internet stays on Line 25.

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Do You Qualify for the Home Office Deduction?

Most gig workers assume the home office deduction is only for people who work at a desk all day. Not true. If you have a dedicated space in your home where you regularly manage your gig business — reviewing your earnings, planning routes, tracking expenses and deductions, doing bookkeeping, filing quarterly estimated tax payments — that space qualifies.

The IRS has two requirements: the space must be used exclusively for business (not your kitchen table where the kids also do homework), and it must be used regularly (not just once at tax time).

Simplified Method vs. Regular Method

The simplified method is built for gig workers who don't want to track every utility bill. You deduct $5 per square foot of your dedicated workspace, up to 300 square feet. That's a maximum deduction of $1,500 with zero receipts required. If you have a small desk area (say 80–100 sq ft), that's $400–$500.

The regular method (Form 8829) lets you deduct a proportional share of your actual housing expenses — rent or mortgage interest, utilities, insurance, repairs, even depreciation. You calculate the percentage of your home used for business (office square footage ÷ total home square footage) and apply that to your actual costs. This method produces a bigger deduction for people with high housing costs, but it requires more recordkeeping.

Which should you choose? If your housing costs are high (rent over $1,500/month) and you have a dedicated room, the regular method usually wins. If you have a small desk area or don't want the hassle, the simplified method gives you an easy deduction with no Form 8829 to file.

Where Do These Deductions Go on Your Return?

All of these deductions flow through Schedule C, which reduces your net self-employment income — lowering both your income tax and your self-employment tax.

Cell phone (business %): Schedule C, Line 25 (Utilities) — most preparers report business cell phone alongside utilities; some itemize it on Line 27b (Other Expenses) with the description "Cell phone — X% business use"
Internet (business %): Schedule C, Line 25 (Utilities) — or roll into Form 8829 if you're using the regular home office method, so you don't double-deduct
Phone accessories: Schedule C, Line 22 (Supplies) for everyday items; Line 27b (Other Expenses) for one-off purchases you want itemized. Other expenses was Line 27a before the 2025 form revision
Home office (simplified): Schedule C, Line 30
Home office (regular): Form 8829, result flows to Schedule C, Line 30

TrakMiles Pro's Schedule C Helper maps your tracked expenses to the correct IRS line items automatically, including the standard mileage vs. actual expense comparison that shows you which method saves more.

Which Mistakes Should You Avoid?

These deductions are straightforward, but gig workers still make mistakes that can trigger an audit or cost them money. Here are the ones to watch for:

Claiming 100% business use on your phone. Unless you have a separate phone exclusively for gig work, claiming 100% will raise flags. Most gig workers use their phone for personal calls, texts, and social media too. Be honest about the split — 60–80% is defensible for full-time drivers.

Deducting internet without business use. If you're a Walmart Spark driver who only uses your phone's data plan on the road and never touches your home Wi-Fi for work, your home internet isn't deductible. The expense must have a genuine business connection.

Claiming home office without exclusive use. The corner of your living room couch doesn't count. You need a dedicated space — even a small desk in a bedroom works, as long as it's only used for business. If the IRS sees "home office" on a return with no clear dedicated space, that's an audit trigger.

Forgetting to claim these at all. This is the biggest mistake. Many gig workers only claim mileage and miss hundreds or thousands in additional deductions. Check out the full 2026 tax checklist to make sure you're not leaving money behind.

Stack These With Your Other Deductions

Phone, internet, and home office deductions work alongside your other gig worker tax deductions. Combined with mileage tracking, the new tip deduction (up to $25K through 2028), and half of your self-employment tax, most full-time gig workers can reduce their taxable income significantly.

The key is tracking everything throughout the year rather than scrambling at tax time. A profit and loss statement updated weekly gives you a clear picture of your true profit and exactly how much to set aside for quarterly payments.

And if you've been skipping some of these deductions in past years, our guide on what happens if you don't report gig income explains how to file amended returns to claim what you missed — the IRS allows amendments going back three years.

Stop Overpaying the IRS Every Month

TrakMiles Pro tracks mileage, time, revenue, and expenses automatically. The Schedule C Helper maps it all to IRS line items at tax time — your accountant will thank you.