Can I claim my phone? | Online Tax

Maximising Tax Deductions: How to Claim Phone Expenses on Your Income Tax Return

If you use your mobile and/or home phone to earn income, you may be eligible to claim a portion of these costs on your income tax return. To help you maximise tax deductions and secure the maximum refund, here’s a comprehensive guide on how to claim phone expenses effectively.

Index

1. Understanding Phone Expense Claims
2. Calculating Work-Related Phone Usage
3. Keeping Accurate Records
4. Claiming Bundled Phone and Internet Services
5. Simplified Claims for Incidental Phone Use
6. Claiming a New Phone Purchase
7. Depreciation of Phone Costs
8. Key Takeaways for Maximising Your Refund
9. Lodge Your Tax Return with GoTax Online

Understanding Phone Expense Claims

You can claim a portion of your mobile and home phone plan costs if you use them for work and your employer does not reimburse you. However, you can only claim the percentage of your usage that is work-related as a tax deduction.

Calculating Work-Related Phone Usage

To calculate your claim:

• Determine the percentage of phone use that is work-related. For example, if 25% of your phone usage is for work over 11 months, you can claim that portion.
• Keep a logbook for four weeks each year to demonstrate this usage pattern if claiming more than $50.
• Provide evidence that your employer expects you to work from home and make work-related calls.

Keeping Accurate Records

Maintain copies of all your phone bills as the Australian Taxation Office (ATO) may request proof of your expenses.  Maintain a log of your phone useage.  You can easily do this by using the Gotax App... Deduction Grabber.  It has all the record keeping bits and pieces to make sure your tax deductions are validated.  Scan our tax QR code now...

Claiming Bundled Phone and Internet Services as a Tax Deduction

If your phone and internet services are bundled, separate the costs for each service and calculate the work-related portion for each.

Simplified Claims for Incidental Phone Use

For incidental phone use, if claiming less than $50, you can use simplified rates:

• 25c per work call made from your landline
• 75c per work call made from your mobile
• 10c per work text sent from your mobile

Claiming a New Phone Purchase

You can claim a tax deduction for the cost of a new phone proportionate to its work-related use. If the phone costs over $300, you need to depreciate the expense over time instead of claiming it all at once.

Depreciation of Phone Costs

For employees, phones costing more than $300 must be depreciated to get your tax deduction. For business owners, a higher threshold applies before depreciation is required. (See 'What is Depreciation' for details.). The Gotax online system works this out for you.

Key Takeaways for Maximising Your Tax Deductions and getting a bigger Refund

• Keep detailed records, receipts, and logbooks to substantiate your claims, use Deduction Grabber.
• Understand the proportion of your phone use that is work-related.
• Use simplified rates for incidental claims to ease the process.

Lodge Your Tax Return with GoTax Online

Lodge your tax return with GoTax Online, your AI-enhanced solution for a quick and efficient online income tax return. Options include:

• Quick Tax Return for $15
• Comprehensive Tax Return for $55
• First-time users can lodge for FREE!

By understanding and utilising these guidelines, you can maximise your income tax deductions and secure the maximum refund on your income tax return for 2024.