For freelancers, remote workers, and small business owners, internet service isn’t just a utility—it’s a business expense. And if you use your home internet for work purposes, the IRS may allow you to deduct a portion of that cost when you file your taxes. The key is knowing what qualifies, keeping clean records, and using digital tools like Fluz and Rakuten to stay organized and maximize savings.
Here’s how to deduct internet expenses the right way—and use cashback apps to make documentation and audit prep easier.
What Internet Costs Are Tax-Deductible?
If you’re self-employed or work as an independent contractor, you can deduct a portion of your internet bill based on how much you use it for business. The deduction applies to:
- Home-based business owners
- Freelancers and gig workers
- Remote workers with 1099 income
You can deduct:
- A percentage of your monthly internet service cost (based on business use)
- Equipment like modems, routers, or signal boosters if used exclusively for work
- Upgraded service tiers if higher speeds are necessary for your job
Employees working under a W-2 typically can’t deduct internet costs unless they qualify for unreimbursed employee expenses under narrow exceptions. For most others, this deduction is a straightforward way to lower taxable income.
Use Fluz to Log and Save on Internet Payments
Fluz lets you buy digital gift cards to pay your internet bill, then rewards you with instant cashback. Major telecom providers supported by Fluz include Verizon, Xfinity, AT&T Prepaid, and T-Mobile.
Every gift card purchase comes with a timestamped digital receipt, making it easy to document what you paid and when.
Tax-friendly benefits of using Fluz:
- Easy-to-download purchase history
- Clear records that separate work-related utility payments
- Cashback savings that further reduce out-of-pocket costs
Using Fluz for internet payments gives you both documentation and savings—ideal for freelancers who want to simplify audit prep.
Use Rakuten to Save on Deductible Tech Purchases
Rakuten provides cashback at stores like Best Buy, Office Depot, and Newegg—perfect for buying work-specific equipment like routers, monitors, or Wi-Fi extenders.
If you purchase tools or accessories used exclusively for your home office, they may be 100% deductible as business expenses. Rakuten not only reduces the cost at checkout but provides digital proof of purchase for tax season.
Bonus tip: Use Rakuten for software subscriptions or hardware upgrades—then save the receipt and note its business purpose in your tax records.
Keep Your Records Clean and Consistent
To claim your internet deduction confidently:
- Determine the percentage of internet use for business (e.g., 70%)
- Save Fluz receipts and Rakuten confirmations in one folder
- Track expenses monthly in a spreadsheet or bookkeeping tool
- Store records for at least three years in case of IRS review
If audited, showing a pattern of business-related internet use—with clear proof of payment—will strengthen your case.
Final Thoughts
Deducting your internet expenses is one of the simplest, most impactful ways to lower your self-employment tax burden. With Fluz for tracking telecom payments and Rakuten for cashback on business purchases, you’re better equipped to save money now and stay prepared for tax season later.
Take advantage of every dollar—download Fluz and start documenting smarter.
