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.
Know exactly what belongs on Line 9220 — and what the CRA says doesn't qualify.
Special CRA rules and percentage limits that apply to telephone & utilities.
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.
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.
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.
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.
| Rule | Limit |
|---|---|
| Cellphone business use | Varies |
| Internet business use | Varies |
See how different professionals use Line 9220 deductions in practice.
Maintained a dedicated business phone line for client calls and conference bridges.
$65/mo × 12 = $780
$780 (100%)
Used a personal cellphone plan primarily for rideshare apps, navigation, and customer communication.
$85/mo × 12 × 80% = $816
$816 (80% business use)
Used home internet for managing online store, processing orders, and customer service.
$90/mo × 12 × 60% = $648
$648 (60% business use)
These errors on Line 9220 can trigger a CRA review — here's how to get it right.
Double-claiming home utilities on both Line 9220 AND Part 7
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.
Claiming full home phone bill when only long-distance is eligible
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.
Not knowing Line 9225 doesn't exist
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.
These categories are often mixed up with Telephone & Utilities. Here's the difference.
See how ScanForTax processes a typical utilities expense.
Rogers Communications
2025-02-15
Ontario
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.
Profession-specific guides that frequently use Utilities deductions.
See how tax recovery works for utilities expenses in each province.
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