Internet service used for business is deductible for the business-use percentage. For most home-based workers, this is 50% to 80% depending on actual business use. A dedicated business internet line is 100% deductible.
Getting the deduction right is not just about whether it is allowed — it is about how you set it up.
Estimate the percentage of your internet usage that is for business activities -- client work, video calls, research, etc.
Keep monthly internet bills. Document your estimated business-use percentage.
Apply the business-use percentage to your monthly internet costs. Deduct on Schedule C.
Do not claim 100% if family members use the internet for personal activities.
If you have a home office, the internet deduction is part of your home office calculation under the actual expense method.
When structured correctly, this deduction can significantly reduce your taxable income.
Here is how this deduction typically works in real situations:
A remote worker pays $80 per month for internet and uses it 75% for business.
An S-Corp owner has a dedicated business fiber line at $150 per month.
A business owner deducts 100% of a family internet plan used heavily for streaming and gaming.
Key Takeaway: The difference between a valid deduction and a denied one usually comes down to documentation, usage percentage, and proper structuring. The same expense can be fully deductible, partially deductible, or not deductible at all — depending on how it is handled.
Yes -- the business-use percentage of your internet bill is deductible. Most home-based workers deduct 50% to 80%.
Only if you have a dedicated business internet line or if you can document 100% business use.
Click your profession to see all the write-offs that apply to your full tax profile.
