Can I deduct my internet if my business is online only?

Yes—if you use your internet for business, you can generally deduct the business-use portion, even if your business is online only. The key is that you usually cannot deduct 100% unless the connection is used exclusively for business.

For a typical home internet plan used for both business and personal life, deduct a reasonable percentage based on business use. Example: if you estimate 70% of your internet use is for your online business and 30% is personal, you may deduct 70% of the bill as a business expense.

Practical ways to support the deduction:

• Keep monthly internet bills and proof of payment.
• Use a consistent, reasonable method to calculate business use.
• Document your estimate, such as work hours vs. personal hours, device/router usage, or a separate business line.
• If you have a separate internet plan used only for business, that is much easier to deduct at 100%.

Where it usually goes:

• Sole proprietor/single-member LLC in the U.S.: typically Schedule C, often under utilities, office expense, or other business expenses.
• Corporation or partnership: it may be reimbursed or deducted through the business books, depending on setup.

Important caveat: rules vary by country and business structure, and tax treatment can depend on whether you are self-employed, an employee, or operating through an entity. If you are a W-2 employee in the U.S., unreimbursed home internet is generally not deductible on your federal return under current rules.