Yes, you can deduct the business-use portion of your cell phone bill. For a rideshare or delivery driver, that's often a meaningful percentage, since the phone runs the driver app, navigation, and customer contact for every single trip. The catch is you can only deduct the business share, not the whole bill.
Why the whole bill isn't deductible
The IRS treats a phone used for both business and personal calls, texts, and apps as mixed-use property. You have to determine a reasonable business-use percentage and apply it consistently, rather than deducting 100 percent of a bill that also covers personal use.
How to calculate the business-use percentage
A common approach is tracking how much of your phone time or data during a representative period is spent on driver apps, navigation, and business calls versus personal use, then applying that ratio to your monthly bill. A driver who estimates 60 percent business use on a $90 monthly plan can deduct $54 a month, or roughly $648 for the year.
What counts toward business use
- Time running the Uber, Lyft, DoorDash, or other platform driver app
- Navigation apps used to reach pickups and drop-offs
- Calls or texts with riders, customers, or platform support
- A dedicated mileage-tracking app running in the background
Where this goes on your return
Cell phone costs are reported as an expense on Schedule C, separate from your mileage deduction. If you buy a phone specifically or mostly for driving work, the device cost itself may also be partly deductible, following the same business-use percentage.
Do I need to keep records of my phone's business use?
Yes. The IRS can ask you to justify the percentage you claimed, so keep your bills and a reasonable basis for the split, such as a log of driving hours versus total phone use over a sample period. A consistent, documented method holds up better than a round number picked without support.
Can I deduct my phone if I only drive part time?
Yes, the same business-use percentage rule applies regardless of how many hours you drive. A lower percentage of business use simply means a smaller deduction, not no deduction.
Sources: IRS, Publication 535, Business Expenses. IRS, About Schedule C.
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