Is Internet Tax Deductible? How the Business-Use Share Works

The short answer

If you use your internet connection for business, the business-use portion of the bill is generally deductible. Use it half the time for work and roughly half the bill qualifies. A connection used entirely for business, such as a dedicated line at a separate office, is fully deductible.

Setting a defensible percentage

As with a phone, the number needs to reflect reality. Base your business-use percentage on how you actually use the connection: the share of working hours online, or the mix of business and personal devices on the network. There is no single official formula, so the standard is reasonableness. Write down your logic so it holds up if questioned.

Watch for double-counting with a home office

If you also claim a home office using the actual-expense method, internet can be part of that calculation. The important thing is not to deduct the same internet twice, once as its own line and again inside the home office. Pick one place for it and keep it consistent year to year.

Keeping it expense-ready

Save the monthly bills, since a recurring charge needs a statement behind it. Internet sits with phone, software, and utilities as a recurring deduction that is easy to overlook, so keep it in how you keep track of business expenses. If you work from home, see the home office tax deduction for how the two interact.

The faster way: let Mylo keep the proof automatically

This is where Mylo quietly does the heavy lifting. It works in the background to capture every receipt from your inbox and the stores you shop at, matches each one to the card charge that paid for it, and files it as a categorized expense, so when you claim your internet and utilities the proof is already there. No new card and no manual entry: Mylo works on top of the Visa, Mastercard, or Amex you already use, and syncs clean, categorized expenses to QuickBooks. Free for individuals on iOS, Android, and the web; teams are $9/user/mo (30-day free trial).

Sources: IRS guidance on business expenses (IRC section 162, Publication 535, Publication 587). This article is general information, not tax advice. Rules change and situations differ, so check with a qualified tax professional for your situation.