Schedule C category lookup

Common questions

• Where does my phone bill go?

  Line 27a (Other Expenses) — deduct the business-use percentage of your monthly bill.

• Where do platform fees (Uber, DoorDash, Etsy) go?

  Line 10 (Commissions and Fees) — the platform’s cut is your business expense.

• Where does my laptop go?

  Line 13 (Depreciation) if you capitalize it, or Line 27a (Other Expenses) if under $2,500 and expensed immediately.

• Where do client gifts go?

  Line 27a (Other Expenses), capped at $25 per recipient per year.

• Where does my self-employed health insurance go?

  Not on Schedule C — it goes on Schedule 1 as an adjustment to income.

• Where does software (Adobe, Notion, etc.) go?

  Line 27a (Other Expenses) — list each subscription separately in Part V.

• Where do car washes and gas go?

  Line 9 (Car and Truck Expenses) — only under the actual-expense method, business portion only.

• Where does meals with clients go?

  Line 24a/b (Travel and Meals) — 50% deductible with documented business purpose.

• Line 8

  Advertising

  Costs to promote your business to customers.

  Examples

  • Online ads (Google, Meta, Reddit)
  • Business cards and flyers
  • Website costs and domain registration
  • Signage
  • Sponsored social posts

  Notes & limits

  • Logo design and brand photography also qualify.
• Line 9

  Car and Truck Expenses

  Vehicle expenses for business use.

  Examples

  • Mileage at 72.5¢/mile (2026)
  • Gas (actual-expense method)
  • Insurance (actual-expense method)
  • Repairs and maintenance (actual-expense method)

  Notes & limits

  • Choose standard mileage OR actual expenses in the first year you use the vehicle for business.
  • You can switch from standard mileage to actual later, but not the other direction.
  • Only the business portion is deductible.
• Line 10

  Commissions and Fees

  Fees paid to others for services rendered on your behalf.

  Examples

  • Referral fees
  • Sales commissions
  • Finder’s fees
  • Platform fees (Uber/Etsy/Upwork take)

  Notes & limits

  • Issue a 1099-NEC to any individual you paid $600 or more in a year.
• Line 11

  Contract Labor

  Payments to independent contractors who performed work for your business.

  Examples

  • Freelancers
  • Subcontractors
  • Virtual assistants

  Notes & limits

  • Issue a 1099-NEC if you paid an individual $600 or more in the year.
• Line 13

  Depreciation

  Deduction for wear and tear on business assets over time.

  Examples

  • Computers used for business
  • Equipment
  • Business vehicles
  • Office furniture

  Notes & limits

  • Section 179 may allow you to deduct the full cost in the year of purchase.
  • Use Form 4562.
• Line 14

  Employee Benefit Programs

  Benefits provided to employees (not yourself as owner).

  Examples

  • Health insurance for employees
  • Group life insurance
  • Dependent care assistance

  Notes & limits

  • Your own health insurance goes on Schedule 1, not here.
• Line 15

  Insurance (Other Than Health)

  Business insurance premiums.

  Examples

  • General liability
  • Professional liability (E&O)
  • Property insurance
  • Malpractice

  Notes & limits

  • Self-employed health insurance goes on Schedule 1, not here.
• Line 16a/b

  Interest

  Interest on business loans.

  Examples

  • Business credit card interest
  • Business loan interest
  • Line of credit interest

  Notes & limits

  • Personal credit card interest is not deductible even if used for business purchases.
• Line 17

  Legal and Professional Services

  Fees paid to professionals for business purposes.

  Examples

  • Attorney fees
  • CPA / accountant fees
  • Business consultant fees
  • Bookkeeping

  Notes & limits

  • Personal legal fees are not deductible.
• Line 18

  Office Expense

  Office supplies and small office costs.

  Examples

  • Pens, paper, printer ink
  • Postage and envelopes
  • Staples

  Notes & limits

  • Computer equipment usually goes under Depreciation (Line 13) or Section 179.
• Line 19

  Pension and Profit-Sharing Plans

  Contributions to retirement plans for employees.

  Examples

  • SEP-IRA contributions for employees
  • SIMPLE IRA employer match

  Notes & limits

  • Your own SEP-IRA contributions go on Schedule 1, not here.
• Line 20a/b

  Rent or Lease

  Business rent payments.

  Examples

  • Office space rent
  • Equipment leases
  • Vehicle leases (business portion)

  Notes & limits

  • Home office rent goes on Line 30 (Home Office), not here.
• Line 21

  Repairs and Maintenance

  Costs to maintain business property in working condition.

  Examples

  • Equipment repair
  • Office repairs
  • Computer maintenance

  Notes & limits

  • Improvements that extend useful life are depreciated, not deducted immediately.
• Line 22

  Supplies

  Materials consumed in providing your service or product.

  Examples

  • Raw materials
  • Packaging
  • Cleaning supplies
  • Tools under $2,500

  Notes & limits

  • Distinct from Office Expense (Line 18) — these are supplies used in the work itself.
• Line 23

  Taxes and Licenses

  Business taxes and licensing fees.

  Examples

  • Business licenses
  • Professional licenses
  • State and local business taxes
  • Payroll taxes on employees

  Notes & limits

  • Federal income tax and self-employment tax are NOT deductible here.
• Line 24a/b

  Travel and Meals

  Business travel and 50% of business meals.

  Examples

  • Airfare, hotel, rental car (travel)
  • Client meals (50% only)
  • Business lunches with documented purpose (50% only)

  Notes & limits

  • Entertainment is not deductible.
  • Meals must include a genuine business discussion.
  • Keep records of who attended and the business purpose.
• Line 25

  Utilities

  Utilities for your business location.

  Examples

  • Electricity
  • Gas
  • Water
  • Phone
  • Internet for a dedicated business location

  Notes & limits

  • Home utilities go through Line 30 (Home Office) at the business-use percentage.
• Line 26

  Wages

  Wages paid to employees.

  Examples

  • Salaries
  • Hourly wages
  • Bonuses to W-2 employees

  Notes & limits

  • Your own "salary" as a self-employed person is not deductible — you are taxed on net profit.
• Line 27a

  Other Expenses

  Legitimate business expenses not listed above.

  Examples

  • Professional subscriptions
  • Software (under capitalization threshold)
  • Continuing education
  • Dues
  • Bank and merchant processing fees

  Notes & limits

  • List each type separately in Part V of Schedule C.
• Line 30

  Home Office

  Business portion of home expenses when you have a qualifying home office.

  Examples

  • Rent or mortgage interest (business portion)
  • Utilities (business portion)
  • Insurance (business portion)

  Notes & limits

  • Requires regular and exclusive use of the space for business.
  • Use Form 8829 for the regular method, or the simplified $5/sqft option (up to 300 sqft / $1,500).