Can 1099 Gig Workers Deduct Phone & Internet Bills in 2026? (The Professional Guide)

If you are a 1099 contractor, your smartphone and home internet aren’t just for entertainment—they are the lifeblood of your business. Whether you’re managing clients through an app or searching for the next gig, these services are essential.

However, a common question arises during tax season: “Can I deduct my entire phone bill?” The short answer is: Generally, no. But you can deduct the portion used for business. For many gig workers, failing to track this correctly is a missed opportunity to lower their 15.3% self-employment tax.

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1. The Core Rule: “Ordinary and Necessary”

According to IRS Publication 535, business expenses must be both ordinary (common in your industry) and necessary (helpful for your trade).

For a gig worker (Uber, DoorDash, or Freelance Designer), a phone is clearly ordinary and necessary. This is why many drivers ask: “Why can’t I just deduct the whole bill if I need it for the app?” The challenge is that the IRS does not allow you to deduct the portion of the bill used for personal calls, social media, or streaming movies.

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2. How to Calculate Your Business Use Percentage

You cannot simply guess. To satisfy the IRS, you need a logical method to determine your business use percentage. Claiming 100% without a second dedicated line can increase scrutiny and act as a major audit trigger.

The Formula:

(Minutes or Data used for Business ÷ Total Minutes or Data) = Business Use %

Example Scenario:

• Your total monthly phone bill: $100
• You use your phone for work 60% of the time (tracking mileage, accepting orders, client calls).
• Your deductible amount: $60 per month ($720 per year).

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3. What Exactly Can You Deduct?

Beyond just the monthly service plan, several other items may be eligible for the 2026 tax year:

• The Device Cost: If you bought a new phone specifically for work in 2026, you can often deduct the cost (or depreciate it).
• Accessories: Chargers, car mounts, and protective cases used for your gig work are often 100% deductible if used only for business.
• Internet at Home: If you have a dedicated home office, a portion of your ISP bill is deductible. Check our Home Office Rules guide to see if your space qualifies.

Expense Category	Personal Use	Business Use	Tax Status
Monthly Service Plan	❌ Non-Deductible	✅ Deductible (%)	Partial
New Phone Purchase	❌ Non-Deductible	✅ Deductible (%)	Partial
Car Phone Mount	❌ Non-Deductible	✅ Deductible (100%)	Full

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4. Avoiding Audit Red Flags: Documentation is Key

The IRS is particularly skeptical of 100% phone deductions unless you have a second, dedicated phone line exclusively for business. Photographic documentation of your setup or digital logs can help substantiate your claims if ever questioned.

To protect yourself, keep these records:

1. Itemized Bills: Highlight business-related data usage or calls if possible.
2. Activity Logs: A simple log showing hours worked vs. total hours can support your percentage claim.
3. Receipts: Store all digital receipts for hardware purchases in a dedicated folder.

💡 Pro Tip: Use our 1099 Expense Tracking Guide to learn how to automate your record-keeping for 2026.

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5. Frequently Asked Questions (FAQ)

Q: Can I deduct my family plan?

A: Only your individual line’s portion of the business use. You cannot deduct the lines used by your spouse or children.

Q: Does the 2026 standard deduction cover this?

A: No. Business expenses for 1099 workers are deducted on Schedule C. This lowers your Adjusted Gross Income (AGI) and Self-Employment tax, regardless of whether you take the standard deduction or itemize. Learn more in our Step-by-Step Guide to Filling Out Schedule C.

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🛡️ Important Disclaimer & Fact-Check

This guide is based on 2026 IRS tax projections and IRS Publication 535. Because individual tax situations vary, this is for simulation and educational purposes only and is not official legal advice. Tax laws and thresholds may change, and this content is updated annually for accuracy. Finally, we strongly recommend consulting a CPA to ensure your business use percentage is calculated accurately. Data Source: IRS.gov.