A mobile phone bill belongs on Line 25, utilities.
Why line 25
The monthly service charge on a phone used for the business is a utility, so the business share goes on line 25. If the phone is also your personal phone, you deduct a percentage, and that percentage has to come from something you can describe: a sample of call and data use, a line on a family plan that only you use for work, or a separate work number. Some preparers report telephone on line 27a as its own itemised entry instead, which is accepted as long as it is consistent and not double counted. The handset is a different question: that is equipment, not a utility.
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 mobile phone bill lands on Line 25 without you sorting it.
Start for freeWhat a mobile phone bill is confused with
- Line 13, depreciation and section 179 expense deduction
- The service plan is line 25; the phone itself is an asset, expensed under the de minimis safe harbor or depreciated on line 13 through Form 4562.
- Line 27a, other expenses
- Either report telephone in utilities on line 25 or itemise it in Part V on line 27a, but not both, and keep the same treatment year to year.
- Line 30, line 30, business use of your home
- Unlike household internet or electricity, a mobile plan is not a home utility, so it is deducted directly at its business percentage rather than through the home office calculation.
Examples that belong on line 25
- $85 a month on Verizon, 70 percent business, $59.50 a month deducted
- $45 a month for a dedicated work line on a family plan, deducted in full
- $30 a month for a prepaid phone used only for job dispatch
- $18 a month of extra data bought for on-site work
- $12 a month for an international calling add-on used for a supplier
What does not belong here
- The whole family plan.
- A flat 100 percent on a phone that takes personal calls.
- The handset purchase, which is equipment rather than a utility.
- Phone accessories and cases bought for personal use.
The limit that applies
Only the business-use percentage is deductible when the phone is also used personally.
What to keep
Keep the carrier statements for the year and a note of how the business percentage was derived. A one-month sample of the itemised call and data log, kept and referenced, supports the percentage for the whole year better than an estimate stated with no basis.
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 security monitoring service | Schedule C, Line 25 |
| a shared internet connection | 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 |
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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 mobile phone bill lands on Line 25 without you sorting it.
Start for free