A hotspot or mobile data plan belongs on Line 25, utilities.
Why line 25
A data plan that connects you to the internet is the same kind of cost as a fixed line, so it goes in utilities on line 25. A standalone hotspot used only for work is deductible in full, which is why a dedicated device is cleaner than tethering off a personal phone: there is no percentage to argue about. Tethered data on a personal phone follows the phone's business-use percentage instead. The hotspot device itself is equipment rather than 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 hotspot or mobile data plan lands on Line 25 without you sorting it.
Start for freeWhat a hotspot or mobile data plan is confused with
- Line 13, depreciation and section 179 expense deduction
- The data plan is line 25; the hotspot device, router or signal booster you bought is equipment, expensed under the de minimis safe harbor or depreciated on line 13.
- Line 30, line 30, business use of your home
- A mobile data plan is a business utility deducted directly, not a household utility, so it does not belong in the home office calculation on line 30.
- Line 24a, travel
- A monthly data plan is a utility; in-flight wifi and hotel internet bought on a particular business trip are costs of that trip and go with travel on line 24a.
Examples that belong on line 25
- $50 a month for a Verizon Jetpack used on job sites
- $35 a month of tethered data on a phone that is 80 percent business
- $25 a month for a data SIM in a van's router
- $90 a month for a site hotspot on a construction project
- $15 of a one-off data top-up for a remote survey day
What does not belong here
- The hotspot hardware, which is equipment.
- A family data plan claimed in full.
- In-flight or hotel wifi on a trip, which belongs with travel.
- Data used for personal streaming on the same device.
The limit that applies
Only the business-use share is deductible where the same data plan is also used personally.
What to keep
Keep the carrier invoices, and if the device is dedicated to the business say so in your notes once rather than reconstructing a percentage later. For tethered data, the percentage has to match the one you used for the phone itself.
Other expenses on line 25
| Expense | Line |
|---|---|
| a dedicated second business landline | 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 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 hotspot or mobile data plan lands on Line 25 without you sorting it.
Start for free