Is a Business Smartphone Tax Deductible? Yes — Here's How to Claim It on Schedule C
100%
Deductible
Line 13
Schedule C
Depreciation (Section 179)
Category
$400–$1,200
Typical cost
If you use a smartphone for business calls, emails, or client communication, you can deduct it as a business expense on your tax return. A dedicated business phone qualifies for 100% depreciation, while a phone used for both personal and business purposes is deductible only in proportion to your business use. Most smartphones cost $400–$1,200 and can be claimed through Section 179 depreciation on Schedule C.
Who qualifies?
Self-employed individuals, sole proprietors, and single-member LLCs filing Schedule C can deduct business smartphones. Freelancers, consultants, contractors, and any business owner who uses a phone primarily for work expenses qualifies.
How to claim it
- 1 Step 1: Document your business use percentage. Keep records showing how much time you spend on business versus personal calls, texts, and apps.
- 2 Step 2: Calculate the deductible amount by multiplying the phone's cost by your business use percentage (e.g., $800 phone × 80% business use = $640 deduction).
- 3 Step 3: Enter the deductible amount on Schedule C, Line 13 (Depreciation and Section 179 expense deduction) when filing your tax return.
Pro tip
Purchase a dedicated business phone instead of using a personal device to claim 100% of the cost. This eliminates the burden of tracking business-use percentage and simplifies IRS compliance. Keep your receipt and take a photo of the phone's IMEI number for documentation purposes.
Source: IRS Publication 946: How To Depreciate Property
Judy automatically tracks Smartphone — Business Use
Connect your business bank account and Judy categorizes Smartphone — Business Use charges to Depreciation (Section 179) (Line 13) — no spreadsheets, no manual entry. Get a free 30-day audit first, then subscribe.
Get your free audit