Are Bills Tax-Deductible?

Posted by KC Morgan Dec 15, 2008

Admit it - you do a lot of spending for the sake of self employment. There’s the cost of the home computer, all that paper you use for printing, not to mention the cost of ink and other machine maintenance. You spend money on long-distance phone calls and materials to help you get the job done. But what about all those other costs that come up so naturally, you all but forget about them? Are bills tax-deductible?

You use the Internet to conduct some of your business, and you couldn’t possibly get by without electricity. You may work at home, but some of those bills come from money you spend on the job. Doesn’t this mean you can claim these expenses on your taxes, and give yourself a much-needed break from the whopping amount you’re going to owe the government?

Work at Home Tax Deductions

Taxes can be tricky for the self employed. Many work at home office expenses, for instance printer paper and ink, can be claimed on your taxes to give you a little relief. Claiming a portion of your home bills and insurance as work expenses, however, is a little trickier. You can’t reasonably claim the entire amount of your home bills as work expenses, because you’re not always working in your home. This means you can only claim a certain percentage of your home-living expenses, and you’ll have to have documentation which shows that these are, indeed, work expenses.

Are bills tax-deductible? A portion of them may be, but it’s important to consult with a tax professional before claiming these expenses in your income taxes. Figuring out the amounts can be an exact science, and you want to make sure you stay right with the government.