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T2125 Line 9220

Telephone & Utilities on Your T2125

Dedicated business lines are fully deductible, but home phone and utility costs follow strict rules. Line 9225 doesn't exist — it's all on Line 9220.

Qualifying Expenses

What You Can (and Can't) Deduct

Know exactly what belongs on Line 9220 — and what the CRA says doesn't qualify.

What Qualifies

  • Dedicated business telephone line (full cost)
  • Long-distance business calls on home phone
  • Cellphone (business-use percentage)
  • Internet (business-use percentage)
  • Gas, electricity, and water for business premises

Does NOT Qualify

  • Basic monthly rate of home phone
  • Personal cellphone usage portion
  • Home utilities (those go to Part 7, Line 9945)
  • Cable TV for personal use
CRA Rules

Rules & Limits

Special CRA rules and percentage limits that apply to telephone & utilities.

Special Rules

Home Phone Basic Rate NOT Deductible

Heads up

The basic monthly rate of your home phone is not deductible. Only long-distance business calls made on your home phone can be claimed. However, a separate dedicated business line is fully deductible.

Dedicated Business Line Is Fully Deductible

Advantage

If you have a separate phone line used exclusively for business, the entire cost — including the basic monthly rate — is fully deductible on Line 9220.

Home Utilities Go to Part 7 (Line 9945)

Heads up

If you work from home, utility costs (heat, electricity, water) for your workspace are claimed in Part 7 (Line 9945), NOT on Line 9220. Do not double-claim.

Line 9225 Does NOT Exist

Heads up

IMPORTANT: There is no separate Line 9225 on the T2125. Telephone and utilities are combined on Line 9220. Some older guides incorrectly reference Line 9225.

Percentage Limits

Rule Limit
Cellphone business use Varies
Internet business use Varies
Real Examples

Real-World Examples

See how different professionals use Line 9220 deductions in practice.

IT Consultant Line 9220

Dedicated Business Phone Line

Maintained a dedicated business phone line for client calls and conference bridges.

Amount

$65/mo × 12 = $780

Deductible

$780 (100%)

Rideshare Driver Line 9220

Cellphone Plan (80% Business Use)

Used a personal cellphone plan primarily for rideshare apps, navigation, and customer communication.

Amount

$85/mo × 12 × 80% = $816

Deductible

$816 (80% business use)

E-commerce Seller Line 9220

Internet Plan (60% Business Use)

Used home internet for managing online store, processing orders, and customer service.

Amount

$90/mo × 12 × 60% = $648

Deductible

$648 (60% business use)

Watch Out

Common Mistakes to Avoid

These errors on Line 9220 can trigger a CRA review — here's how to get it right.

01
high
Mistake

Double-claiming home utilities on both Line 9220 AND Part 7

Correction

Home utilities (heat, electricity, water) go ONLY to Part 7 (Line 9945). Line 9220 is for dedicated business phone lines and the business portion of cellphone/internet. This is the #1 audit risk for this category.

02
high
Mistake

Claiming full home phone bill when only long-distance is eligible

Correction

The basic monthly rate of your home phone is not deductible. Only long-distance calls made for business purposes can be claimed. Consider getting a dedicated business line instead.

03
medium
Mistake

Not knowing Line 9225 doesn't exist

Correction

Some older tax guides and software reference Line 9225, but it does not exist on the T2125. Telephone and utilities are combined on Line 9220.

Don't Mix Up

Commonly Confused Categories

These categories are often mixed up with Telephone & Utilities. Here's the difference.

vs
Line 9945

Business-Use-of-Home Expenses

Home utilities (heat, electricity, water) go to Part 7 (Line 9945), not Line 9220. Don't double-claim. Line 9220 is for dedicated business phone lines and the business portion of cellphone/internet.

Sample Receipt Walkthrough

See how ScanForTax processes a typical utilities expense.

Receipt

Rogers Communications

2025-02-15

Business Phone Line - Monthly $$65.00
Long Distance $$12.50
Subtotal $$77.50
HST $$10.08
TOTAL $$87.58

Ontario

How ScanForTax categorizes this

ScanForTax identifies this as a Rogers business phone bill and categorizes it under Telephone & Utilities (Line 9220). The $10.08 HST is flagged as fully recoverable through your ITC claim.

FAQ

Frequently Asked Questions

Can I deduct my full cellphone bill?
Only the business-use portion of your cellphone bill is deductible. Estimate your business vs. personal usage percentage and apply it to your total bill.
Is my home phone deductible?
Only long-distance business calls on your home phone are deductible. The basic monthly rate is NOT deductible. Consider getting a dedicated business line instead.
Where do home utilities go?
Home utilities (heat, electricity, water) go to Part 7 (Line 9945) as part of your business-use-of-home expenses. They do NOT go on Line 9220.
Official CRA guide for Line 9220 →

Related Professions

Profession-specific guides that frequently use Utilities deductions.

IT Consultants & Freelance Developers

For IT & Tech Professionals

Rideshare & Delivery Drivers

For Rideshare & Delivery Drivers

E-commerce Sellers

For E-commerce Sellers

Photographers & Creatives

For Photographers & Creatives

Tax Guides by Province

See how tax recovery works for utilities expenses in each province.

Ontario

HST — 13%

British Columbia

GST + PST — 12%

Alberta

GST Only — 5%

Quebec

GST + QST — 14.975%

Related Expense Categories

Business-Use-of-Home Expenses

Line 9945

Other Expenses

Line 9270

Tax deadline is April 30th.

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