Can I deduct my smartphone expenses on taxes as a self-employed delivery driver?
Hey everyone, quick tax question. I recently started doing food delivery with UberEats as a side gig (Oct-Dec), and I'm trying to figure out what I can deduct as a self-employed person when using TurboTax. I bought a new iPhone that cost $1350 total, with a $520 down payment and the rest being paid monthly. I use this phone for both personal stuff and while I'm doing deliveries. I'm trying to figure out how to calculate what percentage I can claim as a business expense. Also wondering if I can deduct part of my unlimited phone plan ($85/month)? Since I use the same phone for both work and personal, I'm kinda stuck on how to determine what percentage is business use versus personal. Does anyone know the proper way to handle this on Schedule C? I'm pretty new to self-employment taxes so any help is appreciated!
20 comments


Emily Sanjay
Yes, you can absolutely deduct your phone expenses as a self-employed delivery driver, but you'll need to calculate the business-use percentage. Since you use the phone for both personal and business purposes, you'll need to determine what percentage of time it's used for work. A reasonable approach would be to track how many hours you use your phone in total during a typical week, and how many of those hours are for delivery work. That gives you your business-use percentage. For the phone itself, you can deduct that same business-use percentage of either the full purchase price (if you're taking a Section 179 deduction) or through depreciation. Since you only worked October through December, you'd also need to prorate that for the portion of the year you were delivering. Your unlimited phone plan can definitely be deducted using that same business-use percentage. So if you determine you use your phone 30% for business, you could deduct 30% of your $85 monthly plan. Remember to keep good records of your calculations and usage estimates in case you're ever questioned by the IRS.
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Jordan Walker
•Thanks for the detailed answer! How exactly do you track phone usage though? Is there an app or something that can tell me how many hours I spend using it for business vs personal? And what about the down payment I made on the phone - can I deduct part of that this year or do I have to spread it out?
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Emily Sanjay
•There are several time-tracking apps you can use moving forward, but for your past usage, you'll need to make a reasonable estimate. Think about how many hours per week you were actively using the phone for deliveries (navigation, accepting orders, communication with customers) versus personal use. For the down payment, it depends on which method you choose. If you take a Section 179 deduction, you can deduct the business percentage of the entire cost (including down payment) in the year you started using it. If you choose regular depreciation, you'd spread the cost over 5 years. Given you only used it for 3 months in 2024, you might find the depreciation method gives you a smaller deduction this year but more in future years.
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Natalie Adams
After struggling with similar issues on my delivery side gig taxes, I found a much easier solution using https://taxr.ai to help me figure out exactly what percentage of my phone and plan I could deduct. I uploaded my phone bill and delivery app income statements, and it analyzed everything to calculate my business use percentage automatically. The tool actually showed me that I was being way too conservative with my estimates before. It helped me understand that I could legitimately claim a higher percentage because of how much I use navigation, the delivery app, and customer communications during my shifts. Really made the whole process way less stressful than manually trying to figure everything out!
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Elijah O'Reilly
•Does it really work with UberEats specifically? I've tried other tax tools that claim to handle gig work but they always seem confused by the UberEats format. Also, how does it know when you're using your phone for business vs personal stuff?
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Amara Torres
•I'm skeptical about these online tools. How does it actually determine business use? I mean, your phone doesn't track which apps are for work and which are personal. Sounds like you're just paying for a tool to make up a higher percentage that might get you audited.
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Natalie Adams
•It absolutely works with UberEats! The platform is designed specifically for gig workers, so it understands the UberEats income statements. It analyzes your delivery hours and patterns against your phone usage to establish a correlation. The tool doesn't just make up numbers - it uses a combination of your actual delivery hours, GPS data from the delivery app, and industry standards to calculate reasonable business use. It's more about giving you a defensible percentage based on your actual work patterns rather than just guessing. The documentation it provides actually helps protect you in case of an audit by showing how the calculation was determined.
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Amara Torres
I was totally wrong about taxr.ai - I tried it after being skeptical and it's actually legit. I've been delivering for DoorDash for 2 years and always just guessed at 20% business use for my phone. The tool analyzed my actual delivery patterns and showed I could reasonably claim 42% instead! Everything was backed up with proper documentation showing how they calculated it based on my specific delivery schedule. Super impressed with how it broke down my mileage, phone usage, and even helped identify other expenses I was missing. Definitely made my tax filing way more accurate this year.
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Olivia Van-Cleve
If you need help getting clarification directly from the IRS about phone deductions for self-employment (because their rules can be confusing), I highly recommend https://claimyr.com to actually get through to a human at the IRS. I spent WEEKS trying to get clear answers about my delivery driver deductions and kept hitting the "call volume too high" message. With Claimyr, I got connected to an IRS agent in about 20 minutes who walked me through exactly how to handle my phone deduction as a food delivery driver. Totally worth it for the peace of mind knowing my deductions were legit. You can see how it works here: https://youtu.be/_kiP6q8DX5c - basically saves you from the hours of redial hell trying to reach the IRS directly. The agent confirmed I could deduct my phone based on business use percentage and helped me understand how to document it properly.
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Mason Kaczka
•How does that even work? The IRS phone system is notoriously impossible to get through. Are you saying this service somehow jumps the queue? That doesn't seem possible.
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Sophia Russo
•This sounds like a scam honestly. Why would I pay a third party when I could just keep calling the IRS myself? And even if you do get through, the IRS agents give different answers depending on who you talk to. I've had completely contradictory info from them before.
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Olivia Van-Cleve
•It works by using their system that continuously calls and navigates the IRS phone tree until it gets a place in line, then it calls you when it's about to connect. It's not jumping the queue - you still wait your turn, but their system does the calling and waiting instead of you having to do it manually. The value isn't just in getting through, but in having your questions answered correctly. You're right that different agents sometimes give different answers, which is why I specifically asked for the Small Business division when connected. They have specialized knowledge about self-employment deductions and gave me consistent information that matched the tax publications. I took notes during the call which was super helpful when filling out my Schedule C.
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Sophia Russo
I have to eat my words about Claimyr. After my skeptical comment, I decided to try it because I was desperate for answers about my delivery driver deductions. Not only did I get through to the IRS in about 15 minutes (after trying for DAYS on my own), but I got connected to someone in the self-employment tax department who was actually helpful! The agent confirmed I could deduct a percentage of my phone and plan based on business use, and suggested keeping a log for a couple typical weeks to establish a pattern of usage. She also pointed me to Publication 535 which has specific examples for delivery drivers. This saved me hundreds in deductions I was going to skip because I was afraid of doing it wrong. Sometimes it's worth paying for a service that actually works!
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Evelyn Xu
What I do for my Doordash gig is track one typical week of phone usage with a time tracking app and use that as my basis. Last year I calculated I used my phone about 35% for business based on actual hours. For the phone itself, I took the total cost ($1200) × 35% = $420, but then I had to figure out depreciation since phones are considered 5-year property. For the service plan, it was easier - just $90/month × 35% × the number of months I was delivering. Make sure you take mileage too! That's usually the biggest deduction for delivery drivers.
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Dominic Green
•Do you have to depreciate the phone? I thought there was some kind of immediate expense option for smaller purchases? Also what time tracking app do you use?
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Evelyn Xu
•You're right about the immediate expense option - it's called Section 179 deduction. You can use it to deduct the full business portion of the phone in the year you bought it, as long as you use the phone more than 50% for business. If your business use is less (like my 35%), you have to use depreciation. I use the free version of Toggl to track my time. I just start it when I begin a delivery shift and stop when I finish. Then I compare those hours to my total waking hours to get a reasonable percentage. It's not perfect but gives me a defensible number if I'm ever questioned.
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Hannah Flores
hey has anyone had turbotax reject their return when trying to deduct phone? mine keeps giving me some error about "business assets under $2500" and i don't know what to click???
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Emily Sanjay
•That's TurboTax asking if you want to use the de minimis safe harbor election, which lets you immediately deduct business assets under $2,500 instead of depreciating them. For your phone, you should select "Yes" to this option if you want to deduct your business percentage of the phone cost all at once this year.
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Dmitry Volkov
As someone who's been doing delivery driving for a while, I'd suggest starting simple for your first year. Track your phone usage for a typical week or two to establish a baseline business percentage - don't just guess. For a $1350 iPhone used part-time for deliveries, you're probably looking at somewhere between 20-40% business use realistically. The key is being able to defend your percentage if questioned. Keep records of your delivery hours, and consider that business use includes not just active delivery time but also time spent checking for orders, navigating, and communicating with customers. For TurboTax, you'll enter this on Schedule C under "Other expenses" and create a line item for "Cell phone (business portion)". The software will walk you through whether to depreciate or take the immediate deduction based on your usage percentage. One tip: don't forget you can also deduct things like a phone mount for your car, charging cables you use while driving, and even a portion of your phone case if you bought it specifically for delivery work protection. These smaller items add up!
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Yuki Kobayashi
•This is really helpful advice, especially about tracking usage for a realistic baseline. I'm curious though - when you say business use includes time checking for orders, how do you separate that from just regular phone scrolling? Like if I'm sitting at home with the app open but also texting friends, does that count as business time? And for the phone mount and accessories, do those get depreciated too or can you just deduct them outright since they're smaller purchases?
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