How Much of My Personal Phone and Internet Can My S Corp Reimburse?
A focused answer for business owners and rental-property owners.
The direct answer
Reimburse a supportable business portion under the company’s policy and the applicable expense rules. A personal subscription used partly for work is not automatically a 100% business expense.
How to evaluate your situation
Identify who uses each service and how the business benefits. The evidence for a dedicated business connection may differ from a family plan serving several people. Keep billing statements, document the allocation method and apply it consistently. Revisit the percentage when work habits or household users change. A simple written explanation is useful, but an arbitrary percentage chosen to achieve a tax deduction is not a substitute for facts. Employer-provided cell phones and reimbursements can involve special rules, so the treatment should match the arrangement. Coordinate these reimbursements with any office-expense calculation to prevent deducting the same internet cost twice.
Hypothetical example
An owner works from home and uses one internet connection for business meetings and family streaming. The expense report applies a reasonable business allocation supported by usage and the work arrangement. The household’s total bill is not treated as a business cost simply because a company meeting occurred online.
Records to gather
- Bills
- users
- business needs
- allocation method
- policy approval
- check for duplicate home-office expense entries
Related question
Should I claim the same internet expense through two reimbursement categories?
No. Different categories do not create two deductions for one cost. Reconcile reimbursements to the underlying bill and total eligible business amount.
Source and next step
Updated September 30, 2026. This general federal tax discussion does not decide an individual filing position. Apply the current instructions for the actual tax year and your complete facts.
Review the related AE service and bring the listed records to a discovery call.
AE engagement pricing
$7,800 standard advisory engagement. No required recurring annual planning fee. Two $3,900 payments, 30 days apart. Returns, amendments, cost segregation and additional services are separately scoped. See published pricing for the service you need.
Related Reading
Talk Through Your Situation
Every situation turns on its own facts. Schedule a discovery call and we will walk through what applies to you, what it is worth, and what it would take to put it in place.