1. Be Cautious When Determining the Percentage of Business Use
Accurately calculating how much of your cell phone usage is for work versus personal use can be difficult
If you’re unsure, avoid overestimating your business-use percentage to prevent issues with the CRA
Keep a detailed log of work-related calls, texts, and app usage to support your claim
2. Eligible Expenses
You can deduct the business-use percentage of the following expenses:
Monthly Service Plan: Include charges for talk, text, and data
Hardware Costs: If you purchased a phone, deduct the portion used for business
Accessories: Items like chargers or phone cases, if specifically used for work purposes
Repairs and Maintenance: Costs to repair your phone, proportionate to business use
3. Ineligible Expenses
Personal-use portion of cell phone costs
Costs unrelated to your business or work
4. Keep Detailed Records
Maintain bills and receipts for your phone plan, hardware, and accessories
Document your business-use percentage with a log of work-related calls, texts, or app usage
5. How to Claim for Employment (T777)
If your employer requires you to use your cell phone for work, claim the expense using Form T777 (Statement of Employment Expenses)
You’ll need a signed T2200 or T2200S (Declaration of Conditions of Employment) from your employer
6. How to Claim for Self-Employment (T2125)
If you’re self-employed, report cell phone expenses under Business Use of Home Expenses on Form T2125 (Statement of Business or Professional Activities)
Apply your business-use percentage to calculate the deductible amount
Why This Matters
Claiming your cell phone expenses for work or self-employment reduces your taxable income and ensures you get credit for legitimate business expenses. However, inaccurate claims can lead to audits or penalties, so careful record-keeping is essential.