How to Prove Work-Related Use of Your Phone When Working from Home
If you’re working from home and plan to claim a deduction for your phone and internet expenses, it’s important to understand how to correctly calculate and support your claim—especially if you’re using the actual cost method.
Under the fixed rate method, phone and internet usage is already included in the hourly rate, so you can’t claim these costs separately. However, if you opt for the actual cost method, you’ll need to determine the work-related portion of your phone and internet use to claim it as a deduction.
The simplest and most practical way to do this is by keeping records over a continuous 4-week period. This can be done through a spreadsheet, diary, or app that captures details like:
- The number of phone calls made for work
- The amount of time spent on the internet for work-related activities versus personal use
Once you’ve worked out your work-related percentage over that 4-week period, you can apply that percentage across the rest of the income year, as long as your usage patterns remain consistent.
For example, if you determine that 60% of your phone and internet use is for work during your 4-week tracking period, you can apply that percentage to your annual phone and internet costs to calculate your deduction.
Keeping clear records not only helps you get the deduction you’re entitled to, but also ensures you’re protected in the event of a tax review. It’s a small effort that can lead to meaningful tax savings.
If you’re unsure which method is right for your situation or need help calculating your actual usage, don’t hesitate to speak with your accountant.
