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Itemized Deductions Schedule-A


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Old 02-07-2012, 03:10 PM
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Home Internet Deduction?

I don’t have a home business, but I heard anyone who works from home on the internet can deduct a portion of their internet bill on their taxes. Is this true? If so, where do I claim this? For example, let’s say 60% of the time I use the internet at home, it’s for work related purposes. If I take my 2011 internet bills and get a total and then multiply that by 60%, I get a # that supposedly is deductible. Do I claim it somewhere on Schedule C or Schedule 2106?

In addition to that, where do I claim a work uniform for a deduction?

Please help.


Last edited by rockdawg : 02-07-2012 at 03:12 PM.


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Old 02-07-2012, 11:03 PM
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“I don’t have a home business, but I heard anyone who works from home on the internet can deduct a portion of their internet bill on their taxes. Is this true?”---->You do not have to have a home business office. To deduct the cost of your in-home Internet service, you must use your Internet connection for work purposes. Only the portion of business-related activities on the Internet are deductible. This includes checking your work email on weekends, logging into company databases and participating in online conference calls from home. You may only deduct the portion of your Internet that you use for business purposes. For example, unless you work at home often and spend very little time on the Internet for personal matters, deducting half the cost of your monthly Internet bill is probably outside what the tax code allows. Instead you may deduct a smaller percentage based on your actual business use that you can verify with information such as network data logs or your ER's time sheets that show you often work from home.
“If so, where do I claim this? For example, let’s say 60% of the time I use the internet at home, it’s for work related purposes. If I take my 2011 internet bills and get a total and then multiply that by 60%, I get a # that supposedly is deductible. Do I claim it somewhere on Schedule C or Schedule 2106? “----->Internet service as a business expense deduction, the Internet service must be ordinary and necessary in the course of the business. You will be able to deduct a portion of the bill based on the total time you use the internet for business divided by the total time the internet is used. So if you use the internet for 100 hours for the month and 60 hours is used for business then 60% of that months bill would be used. You should keep a log of the usage each month. So,you need to estimate your personal use and prorate for that.You can deduct your business related internet bill on Sch C of 1040; write Business Internet Service Expense and the deductible amount under Part V of Form 1040 Schedule C if filing as a sole proprietor. Then transfer the total amount from Part V to Line 27 of Form 1040 Schedule C.If you own a business or complete business taxes, you may be able to deduct the full cost of Internet service from your business income taxes and thus reduce your taxable income. If you don't operate a business but use your personal home Internet for work, you can only deduct the business-related portion of the cost if you itemize your deductions. OR Write business internet service expense and the deductible amount on a separate schedule with any other deductions not listed on Form 1120 if filing as a C corp. Then transfer the total amount from the attached schedule to Form 1120 Line 26. OR you needto write business internet service expense and the deductible amount on a separate schedule with any other deductions not listed on Form 1065 if filing as a partnership. Then transfer the total amount from the attached schedule to Form 1065 Line 20.
“In addition to that, where do I claim a work uniform for a deduction?”---->I guess you, if you are an EE,can claim it on Sch A of 1040 line 21 in the Job Expense and Certain Miscellaneous Deductions section
For sole proprietors and single-member LLCs, show these expenses in the "Expenses" section of Schedule C;for partnerships and multiple-member LLCs, show these expenses in the deductions section of Form 1065;for corporations, show these expenses in the deductions section of Form 1120.



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