Is the Internet Considered A Utility Bill? (Here's the Answer) (2024)

Utility bills aren’t the most alluring expenses to look at each month because you are paying several hundred dollars for them. Things such as electricity, gas and water are needed to have a stable home life. The cost of utilities can vary depending on your local climate, city and size of your home or apartment. But is your internet needed or considered a utility bill? Keep reading to find out.

What is a Utility Bill?

A utility bill is a detailed invoice for services you use that allow your household to function. Utilities include essential services such as electricity, natural gas, water & sewage, etc. These common utilities are needed for basic services inside your home, apartment, or business to keep it comfortable and functioning properly.

These bills are ongoing or monthly household expenses, think of the expenses as ‘overhead costs’ for a business, which are the costs being set aside for a specific service. Remember your utility costs will vary depending on your style of living be it a home, condo or smaller studio apartment.

What is a Utility Bill?

A utility bill is a detailed invoice for services you use that allow your household to function. Utilities include essential services such as electricity, natural gas, water & sewage, etc. These common utilities are needed for basic services inside your home, apartment, or business to keep it comfortable and functioning properly.

These bills are ongoing or monthly household expenses, think of the expenses as ‘overhead costs’ for a business, which are the costs being set aside for a specific service. Remember your utility costs will vary depending on your style of living be it a home, condo or smaller studio apartment.

Is the Internet Considered A Utility Bill? (Here's the Answer) (2)

Types of Utility Bills

There are many different types of utilities and hence different utility bills. There can be different utility bills for businesses and households. However, a few common utilities are:

● Electricity: A bill issued by an energy provider because of your energy consumption and being connected to an electric grid.

● Water: A bill issued by utility companies for consuming water at a household or business.

● Natural Gas: A bill sent by a gas supplier for using natural gas and being connected to a gas mains network.

● LPG: A bill from a gas retailer for restocking or refilling of LPG gas at a property.

● Sewage: It’s usually a separate charge from your water bill meant to cover any maintenance of local sewage and stormwater drains.

These monthly bills are considered a utility because it’s an essential need for your household to properly function. The essential services provided to you through the services listed above allow us all to carry on with daily life — a monthly internet bill may not be needed for a household to perform their daily activities and/or routine.

Is the Internet Considered a Utility Bill?

Internet bills are considered a utility bill, just like telephone bills, because they provide services to the home or business that are considered necessary for daily activity.

Internet access has become a vital part of everyday life for many people, so as the growth in internet usage accelerates the demand to have it will increase. The increase in usage comes as more and more devices are needed to protect and maintain the comforts of your home life. Many items such as Smart thermostats, door locks, and appliances rely on consistent and safe internet connectivity.

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Can we use an Internet Bill for Proof of Address Verification?

Traditionally, utility bills are considered an acceptable means to demonstrate proof of residency and in most cases, you can use your internet bill to meet this requirement. This also helps support the case that internet service is in fact a utility service. Helpful tip: If you have gone paperless and need proof of residency, print a billing statement from your online account.

Conclusion

Although utility bills vary for businesses and households, the internet is a utility bill for both. Your internet bill fits the definition of a utility bill:

● You have pre-agreed to the provider

● It has a fixed monthly recurring cost

● It can be accepted as proof of address

Even though your internet and energy bills are considered utilities it can be important to monitor or compare their prices with competitors. (That’s if you live in a state or area where competitors are located.)

EPB does a great job at offering its customers affordable rates through the Levelized Billing program. This budget-friendly program calculates a customer’s monthly bill by taking the average of the previous 12 months of energy usage. This means that instead of energy bills that are higher in the summer and winter months, EPB customers can enjoy a more level bill all year long. Learn more about Levelized Billing here.

Is the Internet Considered A Utility Bill? (Here's the Answer) (2024)

FAQs

Is the Internet Considered A Utility Bill? (Here's the Answer)? ›

Internet bills are considered a utility bill, just like telephone bills, because they provide services to the home or business that are considered necessary for daily activity.

Is the internet considered a utility for tax purposes? ›

If you're not claiming the home office deduction, you should report the internet on Line 25 on Schedule C under “Utilities.” You can also include any work-related gas, water and electricity costs.

What is Internet utility? ›

Software used to search the Internet.

What is an Internet bill? ›

Internet billing refers to the process of electronically collecting payment for goods or services provided over the internet.

What is a utility bill for example? ›

A utility bill is a monthly statement of the amount a household owes for any one (or more) of the basic services that generally keep a home operable and comfortable. Examples of utilities include electricity, water and gas.

Can I deduct my internet bill on my taxes? ›

You can claim your Internet deductible on your tax forms. These forms will differ if you're self-employed or a business owner. Internet access that supports services for the business—and is not mandatory for operation—is considered an office expense. Otherwise, your Internet access is classified as a utility.

Are internet bills taxable? ›

Internet Service Charges

California does not have any state or local taxes levied directly on Internet access (that is, the monthly fee that subscribers pay to an ISP to provide access to the Internet).

Should the internet be a utility? ›

The rules would reclassify broadband access as an essential service on par with other utilities like water or power. “For everyone, everywhere, to enjoy the full benefits of the internet age, internet access should be more than just accessible and affordable,” Rosenworcel said at an event at the National Press Club.

Is internet considered a utility Quickbooks? ›

Yes, internet would be considered a utility.

What is utility your answer? ›

The utility of a good or service is determined by how much satisfaction a particular consumer obtains from it. Utility is not a quality inherent in the good or service itself. Total utility is a conceptual measure of the number of units of utility a consumer gains from consuming a good, service, or activity.

What category is internet bill? ›

However, if the internet is being used for personal use, it would likely fall under the category of 'personal expenses'. Some businesses may have a separate category for 'internet expenses', which would include both business and personal use.

Are streaming services considered utilities? ›

Utility bills commonly include electricity, gas, sewer, and water, though they can also include the following services: Heating oil. Cable television. Streaming services.

Is the internet considered a utility in California? ›

Despite not having a public utility designation, broadband infrastructure projects in California are overseen by both the California Department of Technology and the California Public Utilities Commission, similar to other utilities but without the protections for communities that a utility classification could provide ...

Does wifi count as a utility bill? ›

Internet bills are considered a utility bill, just like telephone bills, because they provide services to the home or business that are considered necessary for daily activity.

What is utility for example? ›

Generally speaking, utility refers to the degree of pleasure or satisfaction (or removed discomfort) that an individual receives from an economic act. An example would be a consumer purchasing a hamburger to alleviate hunger pangs and to enjoy a tasty meal, providing her with some utility.

What is a good example of information utility? ›

Therefore, an excellent example of information utility is when a wholesaler provides customers with a sales catalog featuring the various products for sale. Additional information utility examples are targeted marketing campaigns, test drives, and product samples.

What does the IRS consider a utility? ›

Housing and Utilities standards include mortgage or rent, property taxes, interest, insurance, maintenance, repairs, gas, electric, water, heating oil, garbage collection, residential telephone service, cell phone service, cable television, and Internet service.

What are considered utilities for tax purposes? ›

What is considered a utility? In the context of tax deductions and business expenses, a utility typically refers to essential services that are necessary to operate a business or maintain a business property. Generally, business utilities include electricity, gas and water.

What is considered a utility expense? ›

Utility expenses refer to the cost of services required to run a home or business, such as electricity, gas, water, sewage, and garbage collection. What are examples of utilities? Examples of utilities include electricity, natural gas, water, sewage services, trash removal, and sometimes telephone services.

Can I claim internet on my taxes for school? ›

Qualified expenses include required tuition and fees, books, supplies and equipment including computer or peripheral equipment, computer software and internet access and related services if used primarily by the student enrolled at an eligible education institution.

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