Cleveland, OH asked in Tax Law for Ohio

Q: My employer gives me $65/mth for my cellphone, is this taxable income?

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1 Lawyer Answer
Edmond Mack
Edmond Mack
  • Canton, OH
  • Licensed in Ohio

A: Generally speaking, the IRS has answered this question in the negative- In 2011, the Internal Revenue Service issued an internal field memorandum generally advising that employers will be allowed to reimburse an employee’s cell phone expenses if the employer has substantial business reasons, other than providing compensation to the employee, for requiring the employee’s use of personal cell phones in connection with the employer’s business. And provided certain requirements are satisfied, the reimbursement will receive favorable tax treatment. You can learn more about the specific requirements that must be satisfied by reading the IRS internal field memorandum here:

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