As a network marketer, you've probably heard that to deduct an expense, the bill needs to be in your name. But here’s a surprising truth: the IRS isn’t focused on whose name is on the bill—it cares about how you use the expense. If you’ve ever wondered whether you can deduct your phone bill on a family plan or your home office expenses, keep reading. We’ll break it all down and show you how to maximize your savings.

When it comes to tax deductions, the IRS isn’t hung up on names. Instead, they’re focused on whether the expense is "ordinary and necessary" for your business. This means if you’re using part of your home as an office or your phone to run your business, you’re likely eligible for deductions—even if the bill is in someone else’s name.

For example, if you’re sharing a phone plan with your family, the IRS doesn’t care if the bill is in your spouse’s or your mom’s name. What matters is proving that you’re using a portion of that service for your business. The trick? Keep records of your expenses and note how much of it is tied to your business.

Let’s face it—if you’re running a business from home, your expenses are probably mixed with personal ones. That’s why the IRS allows you to split bills and deduct the business portion. But how exactly do you do that?

Start by figuring out the percentage of each expense that goes towards your business. If you use your internet for work 50% of the time, you can deduct half of your bill. It’s all about being honest with your calculations and having the proof to back it up.

Imagine you’re on a family phone plan that costs $200 a month, and it’s in your spouse’s name. You use your phone for both personal and business calls, and after keeping a log, you’ve calculated that 50% of your usage is business-related.

Now, thanks to the IRS rules, you can deduct $100 a month as a business expense. That’s $1,200 a year you could be saving just by understanding this simple rule! And the best part? You’re still complying with IRS guidelines, as long as you have the logs to show your work-related calls and can trace the payment.

Not sure how to get started? Let’s make it simple:

To maximize your deductions and stay on the right side of IRS rules, documentation is key. Programs like Keep More Worry Less can make it easier. Keep your receipts, track your expenses, and maintain logs of how each expense is tied to your business. For phone bills, create a call log showing business-related calls. For home office expenses, keep a record of utility bills and square footage calculations.

Having this kind of documentation not only helps you at tax time but also protects you if you’re ever questioned by the IRS. And remember, it’s not just about receipts—pair them with detailed records to paint a complete picture.

We know that managing both personal and business expenses can get tricky. But with a little organization and the right tools, you can avoid common pitfalls:

Understanding the IRS rules and keeping accurate records can help you save a lot of money. Remember to:

By following these steps, you’ll stay compliant and keep more of what you earn. So start organizing those records, double-check your percentages, and get ready to see the difference on your next tax return!