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Thursday, September 19, 2013

Is internet service used for education tax deductible?

My kids go to California public school and most of their homework is online. I am also planning on one more desktop since each kid will be needing their own computer. I also use the internet service for office related tasks.
1. Can I take tax right off for a portion of home internet bill (60%).
2. Can I take tax right off on the new computer that I will need to buy for the 2nd child. It will be used exclusively for homework only.
3. What form do I need to use for either of the 2 above?
 
Answer:
A tax deduction may allow you to offset the cost of Internet access if you qualify; to deduct the cost of your in-home Internet service, you must use your Internet connection for work purposes. This includes checking your work email on weekends, logging into company databases and participating in online conference calls from home. You may only deduct the portion of your Internet that you use for business purposes. For example, unless you work at home often and spend very little time on the Internet for personal matters, deducting half the cost of your monthly Internet bill is probably outside what the tax code allows. Instead you may deduct a smaller percentage based on your actual business use that you can verify with information such as network data logs or your employer's time sheets that show you often work from home. SO, when you qualify..Read more...

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