IRS Doesn’t Care Who Pays Your Bills: How to Get Bigger Deductions as a Network Marketer

Let me guess—you're hustling, building your network marketing empire, and juggling bills like a pro. But when it comes to taxes, you’ve been told that if a bill isn’t in your name, you can’t deduct it, right? Well, here’s a reality check: the IRS doesn’t care whose name is on the bill! All they care about is if you paid it and how much of it went toward your business.

So if you’ve got a phone bill in your spouse’s name or are still riding that family plan, don’t sweat it. You can STILL claim those business deductions if you know the rules. Let’s break it down and get you saving more money!

The Real Deal on Deductions: It’s About Business Use, Not Names

Listen up, network marketers! Whether it’s your utility bills, internet, or even your phone, the IRS doesn’t give a damn whose name is on the bill. What matters is that you’re using part of that expense for your business and you’ve got proof to back it up.

Here’s the magic formula:

If the bill is in someone else’s name (your spouse, your mom, your dog—okay, maybe not your dog), and you’re using 50% of that internet or phone plan for your biz, you can deduct 50% of the cost. The IRS just wants to see how you got that number, and we’ll show you how to keep your receipts airtight.

Two_CommaClubX_mockup1 png

Unlock the Hidden Tax Deductions You’re Missing!

Even on Bills Not in Your Name!

Don’t let shared bills or expenses not in your name keep you from maximizing your deductions!

Splitting Bills: The IRS Gives You a Pass to Save Money

Think splitting bills is complicated? Nah. It’s actually a win for you! If you’re working your network marketing magic from home, chances are your expenses are mixed—some personal, some business. That’s why the IRS lets you split the bill and deduct the part you actually use for work.

Here’s how to do it like a boss:

  • Track It: Write it down, make a note on your phone, use an app—whatever. Keep a simple log of what you’re using for business.
  • Calculate It: If 60% of your internet time is business-related, deduct 60%. The math doesn’t need to be fancy—just accurate.

Real Talk: Claiming Deductions on a Shared Phone Bill

You’re on a family phone plan with a bill that’s $200 a month, and it’s in your spouse’s name. No worries! You use your phone for team calls, social media management, and all the stuff that keeps your network marketing biz growing.

Here’s the breakdown: 50% of your phone use is for business. You can deduct $100 per month as a business expense. That’s $1,200 a year back in your pocket! Not bad, right?

Just remember to keep logs of your business calls and texts, and make sure you’ve got payment proof in case Uncle Sam comes knocking.

How to Calculate the Business Portion of Shared Expenses

Let’s keep this simple:

  • Track your business usage: Is it half, 40%, 70%? Whatever it is, write it down.
  • Apply the percentage: For a $100 internet bill, if you use 60% for your business, deduct $60.
  • Use this method across the board: From utilities to your car, keep track of how much you use each for your business.

Record-Keeping: Why It’s Your Best Tax Weapon

Look, I get it—keeping records sounds like a drag. But trust me, solid records mean bigger deductions. And bigger deductions mean more money for you. So let’s keep it real with some simple steps:

  • Save your receipts: Make it digital or use software like Keep More Worry Less to organize everything. No more shoeboxes stuffed with crumpled paper.
  • Log your business use: A quick diary, a note on your phone, whatever works. Just make it consistent.
  • Pair your bank statements with receipts: It paints a complete picture of your expenses for the IRS.
Two_CommaClubX_mockup1 png

Unlock the Hidden Tax Deductions You’re Missing!

Even on Bills Not in Your Name!

Don’t let shared bills or expenses not in your name keep you from maximizing your deductions!

Common Deductions Mistakes That Cost You​

If you’re splitting bills for business and personal use, it’s easy to make mistakes that could cost you serious cash or raise IRS red flags. Here’s what to watch out for:

  • Guessing percentages: Don’t eyeball it—keep track of what you really use.
  • Forgetting to update your records: Your business grows, your usage changes. Keep your numbers current.
  • Not separating expenses: Mix things up, and it’ll be a mess come tax time. Keep them clear!

How to Maximize Your Deductions

You didn’t start your network marketing business to waste money. So let’s make sure you’re saving as much as possible by following these tips:​

  • Keep detailed records of all expenses. Your home office utilities, travel costs, promo materials—track it all. Keep More Worry Less can organize your records, so you stay on top of things.
  • Accurately split expenses. Only deduct the business portion of each bill. It keeps you compliant and audit-proof.
  • Don’t miss out on small deductions. Everything counts, from part of your internet bill to that Zoom subscription you use for team meetings.

Frequently Asked Questions

What does the IRS mean by “ordinary and necessary” expenses?
​The IRS considers an expense “ordinary” if it’s common and accepted in your line of work, like marketing materials or travel to business events. “Necessary” means the expense is helpful and appropriate for your business. It’s not about whether the expense is mandatory, but whether it benefits and supports your business activities. If an expense is ordinary and necessary, you can claim it as a deduction, even if the bill isn’t in your name.

Can I really deduct bills that aren’t in my name?
 Yes! The IRS doesn’t require bills to be in your name or your business’s name to qualify as a deduction. As long as you can prove that the expense is used for business purposes, it doesn’t matter whose name is on the bill. This is common with family phone plans, internet bills, or shared utilities. Just track and document your business use accurately!

How do I split bills between personal and business use?
The key to splitting bills is to calculate what percentage of each expense is used for business purposes. For example, if 50% of your phone usage is for business, you can deduct 50% of your portion of the phone bill. Apply this principle to shared expenses like phone, internet, or even home office utilities, and document your usage to stay compliant.

What records do I need to keep to prove my deductions?
To substantiate your deductions, keep detailed records of your expenses and their business usage. This includes:
Receipts for all shared bills
Logs or notes showing the percentage used for business
Proof of payment (like bank statements)
This documentation is crucial if the IRS ever questions your deductions.

What types of expenses can I deduct if they’re shared or not in my name?
Common shared expenses you can deduct include:

Phone bills (even if they’re on a family plan)
Internet bills (even if the bill isn’t in your name)
Home office utilities like electricity or water
Vehicle expenses if you’re using your car for both business and personal purposes
The key is to calculate the percentage of these expenses used for business and keep records to back up your claims.

Does this apply to the home office deduction too?
Absolutely! If you’re using part of your home as a dedicated office space, you can deduct a percentage of your household expenses like utilities, rent, or mortgage interest based on the square footage of your office. Just make sure the space is used exclusively for business.

How do I know what percentage to deduct for shared expenses?
Determine the percentage by tracking your business use. For example, if you’re using your phone 50% of the time for business calls and follow-ups, that’s your business-use percentage. Apply this same logic to other shared expenses like internet or vehicle costs. It’s all about being honest and accurate with your calculations.

Two_CommaClubX_mockup1 png

Unlock the Hidden Tax Deductions You’re Missing!

Even on Bills Not in Your Name!

Don’t let shared bills or expenses not in your name keep you from maximizing your deductions!

Keep More Worry Less/Deductions/IRS Doesn’t Care Who Pays Your Bills: How to Get Bigger Deductions as a Network Marketer

Simplify Taxes and Maximize Savings!

Keep More Worry Less software is your ultimate tool for effortless expense tracking and maximizing tax deductions

Designed specifically for network marketers, it streamlines your financial management, ensuring every hard-earned dollar is optimized and accounted for. Transform your tax season from stress to success and keep more of your money!

Unlock exclusive tips and strategies to maximize your savings!

Join the Keep More Worry Less newsletter today and stay ahead with expert financial advice tailored just for you. Sign up now and take control of your financial future!

Unlock exclusive tips and strategies to maximize your savings!

Join the Keep More Worry Less newsletter today and stay ahead with expert financial advice tailored just for you. Sign up now and take control of your financial future!