Claiming Your Home Internet as a Side Hustle Expense
Learn how to determine if your home internet bill can be written off for your freelance work, and discover tips to keep your finances in check.
Learn how to determine if your home internet bill can be written off for your freelance work, and discover tips to keep your finances in check.
If you've been diving into freelance work from the cozy confines of your home, you might be wondering if you can write off your internet bill as a business expense. Picture this: your internet connection is like the Bat-Signal for your side hustle—without it, you're just Bruce Wayne, sitting in the dark, instead of swooping in to save the day with your awesome skills. So, is it possible to claim that vital connection on your taxes? Let’s break it down.
The Canada Revenue Agency (CRA) has some friendly guidelines when it comes to expenses. If you use your home internet for freelance work, you might be in the clear for a write-off. The key factor is how much of your internet usage is dedicated to your side hustle versus your Netflix binge sessions or those hours spent scrolling through cat memes. If you can justify that a portion of your internet use directly supports your freelance endeavors, then you might just have a solid case.
To figure out how much you can claim, it helps to track your usage. Think of it like calculating your screen time—except instead of judging yourself for that extra episode of your favorite show, you’re examining how much of your internet activity is genuinely work-related. If you determine that 40% of your internet use is for your freelance work, you can claim 40% of your monthly bill as a business expense. Easy peasy, right?
Make sure to keep all your bills and records organized. This is your version of assembling the Avengers—everything needs to be in place to take on any challenges that come your way. Having clear documentation can save you from any potential tax-time drama. If the CRA ever comes knocking to check your claims, you'll be ready to show them the proof that you’re not just a casual surfer in the vast ocean of the internet.
Additionally, if you’re working from home and have a designated workspace, you might also explore deducting other related costs like a portion of your electricity or even your rent/mortgage. Just remember, it’s all about what’s reasonable and justifiable. Think of it as tuning into a new season of a show—you want to enjoy the benefits without getting tangled up in too many plot twists.
In the end, claiming your home internet for your side hustle can be a great way to keep more of your hard-earned cash in your pocket. Just approach it with a clear plan, track your usage, and keep your receipts like they’re collectibles from your favorite franchise. With a little effort, you can navigate the world of side hustle expenses like a pro, all while keeping the spirit of fun and creativity alive. Happy freelancing!