No, you cannot deduct your personal cell phone or home internet on your federal tax return, even if your employer requires you to use them for work calls or daily tasks.
The old expectation that this deduction might return has officially been put to rest. The breakdown below details how the tax code treats these costs and when state or municipal reimbursement rules step in.
Why It’s Disallowed for W-2 Employees
Prior to 2018, unreimbursed employee expenses were claimable as a miscellaneous itemized deduction subject to a 2% Adjusted Gross Income (AGI) floor.
The Tax Cuts and Jobs Act (TCJA) suspended this category of deductions under Internal Revenue Code § 67(g). Subsequent federal tax legislation eliminated the sunset date altogether, making the suspension permanent.
W-2 employees cannot claim unreimbursed work expenses to reduce their federal taxable income. The narrow exceptions that remain apply only to:
- Armed Forces reservists
- Qualified performing artists
- Fee-basis state or local government officials
- Employees with qualifying impairment-related work expenses
(Note: Independent contractors, freelancers, and sole proprietors filing Schedule C can still deduct ordinary and necessary business expenses. This restriction applies specifically to W-2 wage earners.)
Employer Reimbursement in Washington State & Seattle
Because a federal tax deduction is completely off the table, the only way to offset your costs is through direct employer reimbursement.
- Washington State: Washington follows the baseline established by the Fair Labor Standards Act (FLSA). Private employers are generally not required by state statute to reimburse employees for personal phone or internet expenses unless the out-of-pocket costs drive the worker’s effective pay below minimum wage. Under RCW 43.03.060, state employees are entitled to mileage reimbursement for personal vehicle use on official business, but that does not mandate private phone or utility coverage.
- City of Seattle: Seattle offers significantly stronger protections. Under the Seattle Wage Theft Ordinance, the legal definition of “compensation” covers necessary business and remote work expenses incurred while performing work inside city limits. If remote work or phone usage is mandatory, employers with personnel operating in Seattle are required to cover those reasonable, necessary costs.
What You Should Do Next
- Review internal expense policies: Check your employee handbook to see if an IRS-compliant accountable plan or remote-work stipend is already available. Reimbursements provided through an accountable plan are tax-free to the employee.
- Document required usage: If you split usage between personal and work duties, pull itemized bills or track active work hours to substantiate the exact business portion of the cost.
- Request a stipend or reimbursement: If your employer mandates using personal devices or networks, request a proportional monthly reimbursement or a company-issued device.
- Clarify local jurisdiction rules: If your primary work location is inside Seattle limits, remind HR or payroll of the city’s local expense compensation requirements.