A shared internet connection belongs on Line 25, utilities.
Why line 25
One household connection serving both the business and the family is deducted at its business share on line 25. There is no prescribed formula, so pick a method you can defend and write it down: business hours of use against total hours of use is the most common, and a per-device or per-user count works where the household is the easier thing to count. Keep the method stable year to year, because a percentage that moves without a reason is the part that gets challenged. If a qualifying home office makes the connection an indirect home cost, it can instead be allocated on Form 8829, but it must appear in one place only, never on both.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so a shared internet connection lands on Line 25 without you sorting it.
Start for freeWhat a shared internet connection is confused with
- Line 30, line 30, business use of your home
- With a qualifying home office you may treat internet as an indirect home cost on Form 8829 at the home office percentage, which is an alternative to line 25 and not an addition to it.
- Line 18, office expense
- A separate business-only connection, a dedicated line into a studio or a mobile hotspot used only for work, is fully deductible and often sits with office or utility costs with no split at all.
- not deductible, not deductible
- The household share is not deductible, so a connection shared with a family of four rarely supports a percentage anywhere near 100.
Examples that belong on line 25
- $80 a month connection at a documented 50% business use: $40 a month on line 25
- $960 annual charge at 50%: $480 on line 25
- $45 a month mobile hotspot used only for work: fully deductible
- Four household users, one of whom is you working full time: a per-user split points to about 25 to 40%
- A 10% home office allocating internet on Form 8829 instead: $96 for the year, usually worse than the usage method
What does not belong here
- The full bill because it is paid from the business account.
- Claiming the same connection on both line 25 and Form 8829.
- A percentage that changes every year with no change in facts behind it.
- The television or streaming part of a bundled bill, which is personal.
The limit that applies
Business-use percentage applies, and the same cost cannot be claimed twice by also routing it through Form 8829.
What to keep
Keep the twelve monthly bills and a dated memo setting out the method, the inputs and the resulting percentage. Where the bill is bundled with television or phone, get the itemised breakdown so the split starts from the internet charge alone.
Other expenses on line 25
| Expense | Line |
|---|---|
| a dedicated second business landline | Schedule C, Line 25 |
| a hotspot or mobile data plan | Schedule C, Line 25 |
| a mixed-use phone bill | Schedule C, Line 25 |
| a mobile phone bill | Schedule C, Line 25 |
| a security monitoring service | Schedule C, Line 25 |
| a VoIP service | Schedule C, Line 25 |
| electricity for a rented office or studio | Schedule C, Line 25 |
| gas and heating for business premises | Schedule C, Line 25 |
| internet service | Schedule C, Line 25 |
| utilities in a part-shop part-home building | Schedule C, Line 25 |
| water, sewer and trash for business premises | Schedule C, Line 25 |
Related lookups
- Can I deduct homeowners insurance for an office?
- Where does printer ink go on Schedule C?
- Is a car payment deductible on Schedule C?
Sources
This page explains how Schedule C lines work. It is general information, not tax advice for your situation. If an expense is large or the answer turns on a fact about your business, confirm it with your tax preparer.
Looking for a different expense? The full Schedule C line lookup has every line from 8 to 27 with the expenses that belong on each, and Schedule C expense categories walks the whole form in order.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so a shared internet connection lands on Line 25 without you sorting it.
Start for free