[lo-t]

Hi all! First post...

I'm thinking of upgrading my cell phone to a "SmartPhone" (able to run Word, Excel, Outlook, browse internet, etc.). I work in the IT industry and would be doing this to help me in doing my job, however my employer does not provide my cell phone nor will they purchase the new phone for me. I do use my personal cell phone throughout the day - having my desk phone forward to it.

The purchase of the phone would be a few hundred dollars, and the upgraded plan that allows data network connectivity would cost me appx. $40 per month.

I'm wondering if I can deduct either component from my taxes next year? And if so, how to determine what portion of the phone and plan can be deducted.

26 yrs. Old and not a homeowner... never taken itemized deductions before so I'm new to the whole idea. Hence, I may be way off base in thinking it's even deductable. Thanks in advance.

[AtlantaTaxExpert]

LO-T:

The phone's cost plus the extra charge for the data transmission would be a valid deduction as an employee business expense. Unfortunately, those costs, combined with other miscellaneous deductions, must exceed 2% of your adjusted gross income to be counted. Then, on top of that, you have to itemize on Schedule A to claim them. Since you are not a home owner with a mortgage, it is very likely you will not be able to itemize.

Sorry!

[lo-t]

Thanks Atlanta...

I'm planning for next year's return and am planning on homeownership at some point later this year, so I think I can make it work. As far as the 2% rule goes... I've heard of that before, but am a little confused. Do all my below the line deductions have to TOTAL at least 2%, or do each of the items (categories - i.e. cell phone expenses) I plan to deduct have to be 2%. In the early case I don't think it'd be a problem, but if it's the latter... it might not be possible.

Thanks again. I appreciate the assistance.

Lo-T

[AtlantaTaxExpert]

Lo-T:

There are a variety of miscellaneous deductions that you list on the lower 25% of Schedule A. They include, but are not limited to:

- Employee Business Expenses (detailed on Form 2106)
- Tax preparation fees.
- Professional journals.
- Employee home office expenses.
- union dues.
- work clothing.
- Safety deposit box fees.
- Investment expenses.
- Certain legal fees.

There are other deductions (see Chapter 28 of IRS Pub 17).

All of these fees in total must exceed 2% of your AGI.

[lo-t]

Thanks very much for the help. I think I'll go for it and get the new phone.

[AtlantaTaxExpert]

Glad to help!