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Zara Shah

Can I deduct my internet bill for my 1099 WFH job?

I recently moved into a trailer due to some life circumstances and now have to purchase a hotspot device that's strong enough to handle all my systems for my work-from-home job. Since I'm a 1099 contractor, I'm planning to deduct the hotspot device on my taxes this year, but I'm wondering if I can also deduct the monthly data plan payments? Or should I just play it safe and only deduct the physical hotspot device? I'm guessing my data bill is going to be pretty expensive considering I'll be using it for 8+ hours every workday. The regular plans probably won't cut it for the amount of data I'll need to use. Anyone know what's allowed for tax deductions in this situation?

Luca Bianchi

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Yes, you can absolutely deduct both the hotspot device AND the monthly internet costs as business expenses on your Schedule C! Since you're working as a 1099 contractor, internet access is considered a necessary expense for your business operations, especially for a work-from-home situation. Just make sure you're only deducting the portion used for business. If you're using the hotspot exclusively for work, you can deduct 100% of both the device and the data plan. If you also use it for personal purposes, you'll need to calculate the percentage used for business (like 80% business/20% personal) and deduct that portion. Keep all your receipts and documentation showing the business purpose. This includes the initial purchase receipt for the hotspot and your monthly bills. Also note any days/hours you specifically use it for work purposes in case you need to justify the business use percentage.

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Does this apply if you have regular home internet too? Like if I have WiFi but also need a hotspot specifically for certain work tasks that require more bandwidth?

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Luca Bianchi

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If you have regular home internet plus a separate hotspot specifically for work tasks requiring more bandwidth, you can potentially deduct both. For your home internet, you'd need to determine what percentage is used for business versus personal use, and only deduct that business portion. For the hotspot that's used exclusively for specific work tasks, you can deduct 100% of those costs if it's truly only used for business. The key is to document everything clearly - why you need both services, how each is used for business purposes, and maintain records of all costs.

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Nia Harris

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I went through almost the exact same situation last year! After struggling to figure out my deductions, I found this AI tool called taxr.ai (https://taxr.ai) that really helped me understand my 1099 contractor deductions. It analyzed my work situation and confirmed that both my mobile hotspot device AND the monthly data plan were deductible business expenses. The tool explained that since internet is a necessary expense for a remote 1099 worker, it qualifies as a legitimate business expense. It also helped me track what percentage of my usage was business vs personal, which was super helpful at tax time. Definitely check it out if you're confused about any deductions!

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Does this taxr.ai thing actually give advice that holds up in an audit? I'm always skeptical of these tax tools because I got burned once with bad advice.

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Aisha Ali

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I've heard about this but I'm curious - does it handle all the documentation stuff too? Like does it tell you exactly what records to keep for these kinds of deductions?

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Nia Harris

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Yes, the advice definitely holds up in an audit situation. What makes it different is that it references actual tax code and IRS publications rather than giving generic advice. It's much more specific to your situation than most generic tax tools out there. As for documentation, absolutely! It gives you a complete checklist of exactly what records to keep for each type of deduction. For internet expenses specifically, it told me to keep all monthly bills, the receipt for the hotspot device, and maintain a log showing business use percentage. It even provided templates for tracking business usage.

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Aisha Ali

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Just wanted to follow up about taxr.ai that someone mentioned earlier. I was really skeptical at first but I decided to try it for my 1099 work deductions. It actually caught several deductions I was missing! Not just the internet stuff, but also partial deductions for my phone, some software subscriptions I forgot about, and even some home office expenses. The documentation guidance was super helpful too - I now have a folder with all the receipts and usage logs organized exactly how they should be if I ever got audited. Honestly it gave me so much more confidence about claiming these deductions that I was nervous about before. Definitely worth checking out if you're doing 1099 work.

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Ethan Moore

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If you're having trouble getting straight answers from the IRS about your internet deductions, I highly recommend trying Claimyr (https://claimyr.com). I was stuck on hold with the IRS for HOURS trying to get clarification about home office and internet deductions for my 1099 work. With Claimyr, I got through to an actual IRS agent in about 15 minutes who confirmed that yes, both the hotspot device AND the monthly data plan are deductible business expenses for a 1099 contractor working from home. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The agent even gave me specific guidance on how to document my business use percentage since I occasionally use the hotspot for personal stuff too. Saved me so much time and frustration!

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Yuki Nakamura

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How does this even work? Are they somehow jumping you ahead in the IRS phone queue? That seems impossible.

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StarSurfer

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Yeah right. I've literally spent DAYS trying to reach someone at the IRS. There's no way this actually works. Sounds like a scam to me.

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Ethan Moore

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It's not about jumping ahead in the queue. What Claimyr does is automate the calling and waiting process. They use technology to navigate the IRS phone system and wait on hold for you. When a real IRS agent finally comes on the line, the system calls you and connects you directly to that agent. You don't have to be the one sitting there listening to hold music for hours. I was really skeptical too, but it absolutely works. I got through to an IRS agent in about 15 minutes of my own time (after their system had been waiting on hold). The agent I spoke with was super helpful about my 1099 internet deduction questions. It's definitely not a scam - you only pay if they actually connect you to an agent.

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StarSurfer

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I have to eat my words about Claimyr. After posting my skeptical comment, I decided to try it for myself since I'd been trying for weeks to get through to the IRS about some 1099-NEC questions. Holy crap it actually worked! Got connected to an IRS agent after their system waited on hold for like 1.5 hours (but only about 10 minutes of MY time). The agent confirmed everything about the internet deductions too - both the device and monthly service can be deducted as business expenses, but you need to track business vs personal use. She suggested keeping a log for a sample month to establish your usage pattern. I'm still kind of shocked this service actually delivered what it promised.

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Carmen Reyes

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Just a heads up - make sure you're keeping track of exactly what percentage you're using for work vs personal. I got audited last year for my home internet deduction (also a 1099 worker) and had to justify why I claimed 90% business use. I ended up having to pay back some of the deduction because I couldn't adequately prove that percentage. My tax guy now recommends keeping a usage log for at least one "sample" month to establish your typical usage pattern, then using that to calculate your business percentage. Better safe than sorry!

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Andre Moreau

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Is there an easy way to track internet usage by business vs personal? Like some app or something? Seems like it would be hard to track manually.

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Carmen Reyes

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There's no perfect tracking system, but there are a few approaches that have worked for me since my audit. Some routers let you create separate networks (like a dedicated business network) which helps track business data usage. Another option is keeping a simple log for a few weeks noting when you switch between work and personal use. I now use a time-tracking app that's meant for billing clients, but it also serves as documentation for when I'm working versus not. The IRS didn't expect perfect tracking - they just wanted reasonable documentation showing I had some system for determining my business percentage.

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Dude, I've been writing off my entire internet bill for years as a 1099 worker and never had an issue. As long as your primary use is for work, you're good. Don't overthink this... the IRS isn't going to come after you for a few hundred bucks in internet bills lol.

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This is terrible advice. The IRS absolutely does care about proper allocation between business and personal expenses. My friend just got audited specifically for this issue. Please don't spread misinformation.

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As a 1099 contractor myself, I can confirm that both the hotspot device and monthly data plan are deductible business expenses. The key is proper documentation and accurate business use percentage calculation. For your situation, since you're using the hotspot exclusively for work (8+ hours daily), you should be able to deduct 100% of both costs. However, I'd recommend keeping detailed records showing: 1. Purchase receipt for the hotspot device 2. All monthly service bills 3. A simple log documenting work hours/usage for at least one sample month 4. Any emails or documentation from your employer about remote work requirements The expensive data plan you mentioned is actually a positive for your deduction - it shows the business necessity since regular plans wouldn't meet your work requirements. Just make sure to save everything and be prepared to justify the business use percentage if ever questioned. Don't let fear stop you from claiming legitimate business expenses - just document everything properly!

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This is really helpful advice! I'm in a similar situation as a 1099 contractor and was nervous about claiming my internet expenses. Quick question - when you mention keeping a log for a "sample month," does that need to be a formal spreadsheet or would something simple like notes in a calendar work? Also, if my work requires me to be online pretty much all day during business hours, would that make the business use percentage calculation more straightforward?

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