Yes, you can deduct a portion of your internet and phone expenses from your side hustle income, but only the part that relates to your business. The CRA doesn't allow you to deduct 100% of these costs because most people use their internet and phone for personal reasons too. You'll need to calculate a reasonable business-use percentage and only claim that portion. For example, if you use your phone 40% for business and 60% for personal calls, you can only deduct 40% of your phone bill. The Canada Revenue Agency treats internet and phone bills as shared personal and business expenses. Unlike a dedicated business line or separate internet connection used only for work, your regular household utilities are considered "mixed-use." This means you cannot claim the full cost. Instead, you must estimate what percentage of your usage is business-related and only deduct that amount. The CRA expects this calculation to be reasonable and defensible. If you claim 95% business use on a personal phone, they may question it.
No. The CRA requires you to deduct only the business-use percentage of shared personal and business expenses. If your phone is used 40% for business and 60% for personal reasons, you can only deduct 40% of the bill.
It depends on your actual usage. For a part-time side hustle worked evenings and weekends, 20% to 40% is often reasonable. For a full-time business run from home, 50% to 70% may be justified. Keep a short log to support your estimate.
No, but it makes deducting easier. A separate dedicated line can be claimed at 100% because it's used only for business. If you share one phone for personal and business use, you apply the percentage method.
Keep your monthly bills and a simple log showing your estimated business-use percentage. The CRA doesn't ask for these with your return, but you must retain them for six years in case of audit.
Yes, you can deduct a portion of both if they're used for your business. Calculate the business-use percentage for each separately and deduct only that portion from your taxable side hustle income.