You can generally claim a deduction for the portion of your phone expenses related to work.
This includes both the cost of the phone itself and your phone plan.
However, you should note that you can only claim a deduction if you incur the expense and use the phone for work purposes.
Can I Claim My Phone on Tax?
It depends. Whether you can claim a deduction for your phone on your Australian tax return hinges on how you use your phone and the specific circumstances.
Generally, you can claim a deduction for the portion of your phone expenses that relate to work-related activities.
This includes both the cost of the phone itself and your phone plan.
What Expenses Can I Claim?
You can potentially claim deductions for the following phone-related expenses:
- Phone purchase: If you bought your phone specifically for work purposes, you might be able to claim the full cost as a deduction. However, if you use it for both personal and work, you can only claim a portion.
- Phone plan: You can claim a portion of your phone plan costs if you use your phone for work-related calls, texts, and data.
- Phone accessories: You might be able to claim deductions for phone accessories like chargers or cases if they are primarily used for work.
How Do I Calculate My Deduction?
Calculating your phone-related deduction involves determining the percentage of your phone’s use that is work-related.
This can be challenging, but there are a few methods you can use:
- Logbook: Maintaining a detailed log of your work-related phone usage can provide concrete evidence to support your claim. This involves recording the date, time, and purpose of each work-related call, text, or data usage.
- Reasonable estimate: If keeping a log is impractical, you can estimate your work-related phone usage based on your typical work routine. However, be prepared to justify your estimate if the ATO inquires.
What Records Do I Need to Keep?
To successfully claim a phone-related deduction, you must keep accurate records of your expenses.
This includes:
- Phone bills
- Receipts for the phone purchase and any accessories
- A log of work-related phone usage (if applicable)
Can I Claim a Deduction for My Personal Phone?
If you use your personal phone for work purposes, you can generally claim a deduction for the work-related portion of your expenses.
However, it’s good to keep detailed records to support your claim.
What About Work-Provided Phones?
If your employer provides you with a phone for work purposes, you generally cannot claim a deduction for its use.
The phone is considered a fringe benefit and is not taxable income for you.
Can I Claim a Deduction for Home Office Phone Expenses?
If you operate a home office and use a landline phone for work-related calls, you might be able to claim a deduction for a portion of your phone expenses.
Similar to mobile phone expenses, you need to determine the percentage of phone use related to work.
What is the ATO’s Stance on Phone Deductions?
The Australian Taxation Office (ATO) is aware that many taxpayers claim deductions for phone expenses.
They expect taxpayers to have reasonable records to support their claims.
If your claim seems excessive or unrealistic, the ATO may request further information.
What Happens If I Get Audited?
If the ATO audits your tax return, they may examine your phone-related deductions.
You will need to have accurate and detailed records to support your claims.
Also, you must be prepared to explain how you calculated your deduction and provide evidence of your work-related phone usage.