Can I Claim the Internet as a Tax Deduction?

If you use the internet for work purposes, you might be wondering if you can claim it as a tax deduction. The answer is yes, but only if you meet certain conditions and keep proper records. Learn how you can claim the internet as a tax deduction.

When can you claim the internet as a tax deduction?

You can claim the internet as a tax deduction if you use your personal internet to perform your work duties or to run your business. For example, you can claim the internet if you use it to:

- Access online services to do your work
- Research information, communicate with clients or colleagues, or create documents related to your work
- Attend online courses, seminars or webinars that are relevant to your work
- Manage your business accounts, invoices or marketing

However, you can only claim the work-related portion of your internet expenses as a deduction. You need to apportion your internet expenses between your work and private use, and exclude any costs that are reimbursed by your employer or paid by someone else.

How do you calculate your internet deduction?

There are two methods you can use to calculate your internet deduction: the actual cost method or the fixed rate method.

The actual cost method requires you to keep records of your actual internet expenses and your actual work-related internet use. You can use a diary, a logbook or the gotax deduction grabber app to record the dates and times you use the internet for work purposes. You can then calculate your work-related internet percentage by dividing your work-related internet hours by your total internet hours in a representative period. You can then multiply this percentage by your total internet expenses for the year to get your deduction amount.  And if you hate doing the maths, then scan the Deduction Grabber QR code and let it do all the thinking for you:

The fixed rate method allows you to use a set rate of 67 cents per hour to calculate your deduction for working from home expenses, including internet. This method is simpler and does not require you to keep records of your actual internet expenses or use. However, you still need to keep records of your work-related hours at home, such as timesheets or rosters. You can then multiply your work-related hours at home by 67 cents to get your deduction amount.

How do you claim your internet deduction?

To claim your internet deduction, you need to include it in your tax return under "Internet" in the expense pages area.  It's all laid out for you to make it easy. You also need to keep records of your internet expenses and use for five years after you lodge your tax return. These records may include:

- Receipts or bills for your internet plan or device
- Diary entries, logbooks or apps showing your work-related internet use
- Timesheets, rosters or other documents showing your work-related hours at home

The Gotax Deduction Grabber app does all that for you.

Use GoTax Online for an easy online tax service

If you need help with claiming the internet as a tax deduction or any other tax matters, you can use GoTax Online for an easy online tax service. GoTax Online is an online tax service that helps you lodge your tax return quickly and easily. GoTax Online has a team of qualified and experienced tax agents who can help you with your tax affairs and maximise your refund. GoTax Online also offers:

- A secure and user-friendly platform that allows you to lodge your return anytime and anywhere
- A low fee of $15 for their Quick Return and $55 for a normal Return
- A fast turnaround of your refund within 10 business days, sometimes even less.
- A friendly and helpful customer support team

So what are you waiting for? Claim the internet as a tax deduction today with GoTax Online!