Hello there, jazabellecc.

Recording the internet bill depends on when you'll pay it. I'm here to share more information about it.

If you've already paid for a business expense, enter it as an expense. On the other hand, if you plan to pay the internet bill in the future, enter it as a bill. I've added this reference as your guide for the steps: Learn the difference between bills, checks, and expenses in QuickBooks Online.

As for categorizing the transactions and reflecting them on the books, I'd suggest reaching out to your accountant so they guide you for the correct accounts to use.

Then Schedule C, allows you to report the income you've generated or lost in your business to the IRS. You can get this information in the Profit and Loss report. 

If you've organized the chart of accounts to match schedule C, then the report will provide you with the correct numbers.

I've added these references as an additional guide in managing expenses and taxes:

• Enter and manage expenses in QuickBooks Online
• File your sales tax return and record sales tax payments in QuickBooks Online

I'm just around if you need help preparing your taxes.

I can provide you with some general guidance on how to handle claiming your internet bill as a business expense in QuickBooks Online.

1. Categorizing the Entire Transaction:

   • In QuickBooks Online, you have the option to categorize the entire monthly internet bill as a business expense. You can create a separate expense category for "Internet Expense" or similar, and assign the entire bill to that category.

2. Business Usage vs. Personal Usage:

   • While you have the option to categorize the entire transaction as a business expense, it's generally recommended to track the business usage vs. personal usage from the beginning. This is important for accurate record-keeping and may be required if you ever face an audit or need to provide documentation.

3. Reporting on Schedule C vs. Home Office Deduction:

   • Reporting the internet bill on Schedule C: This is the form used to report income and expenses for a sole proprietorship. You can include your internet expenses along with other business expenses on this form.
   • Home Office Deduction: If you qualify for a home office deduction, you can also include a portion of your internet expenses as part of this deduction. This requires calculating the percentage of your home used exclusively for business purposes.

To handle this in QuickBooks Online:

1. Create a New Expense Category:

   • Go to "Settings" (gear icon) > "Chart of Accounts."
   • Click "New" to create a new expense account, like "Internet Expense."

2. Enter the Monthly Bill:

   • Go to the "Expenses" or "Transactions" tab in QuickBooks.
   • Select the account associated with your internet bill.
   • Add a new expense transaction for the full amount of the bill.

3. Track Business vs. Personal Usage (Optional):

   • It's recommended to keep a separate record of business vs. personal usage, even if you categorize the entire bill as a business expense. This can be done manually or using a tracking system.

4. Consider Home Office Deduction (If Applicable):

   • If you qualify for a home office deduction, consult with a tax professional to determine the percentage of your home used for business purposes, and allocate a portion of your internet expenses accordingly.