Reference
Schedule C expense categories
The expense categories on IRS Schedule C, Part II (lines 8 to 27a), in the form's order, with a plain-language note for each. Every new Expense account starts with these categories pre-filled, so receipts land in the same buckets your tax return uses; rename or add your own in settings anytime.
| Line | Category | What goes there |
|---|---|---|
| 8 | Advertising | Ads and promotion: mailers, web ads, print, business cards. |
| 9 | Car and truck expenses | Driving for the business, via the standard mileage rate or actual vehicle costs. Commutes don't count. |
| 10 | Commissions and fees | Sales commissions and platform or service fees. |
| 11 | Contract labor | Payments to contractors and freelancers (1099 work), not employees. |
| 12 | Depletion | Costs of extracting natural resources. Most service businesses never touch this line. |
| 13 | Depreciation and section 179 expense deduction | Recovering the cost of equipment and property over time, or all at once under section 179. |
| 14 | Employee benefit programs | Benefits for employees: health and life plans, dependent care. As a sole proprietor you generally can't count your own. |
| 15 | Insurance (other than health) | Business insurance: liability, malpractice, workers' comp. Health insurance for the self-employed goes on Schedule 1 instead. |
| 16a | Mortgage interest paid to banks, etc. | Interest on a mortgage for business property. |
| 16b | Other interest | Other business borrowing: credit lines, business cards, equipment loans. |
| 17 | Legal and professional services | Lawyers, accountants, consultants, and similar professional fees. |
| 18 | Office expenses | Small consumables: pens, paper, toner. Furniture and equipment belong on the depreciation line. |
| 19 | Pension and profit-sharing plans | Contributions to retirement plans: SEP, SIMPLE, 401(k). |
| 20a | Rent or lease: vehicles, machinery, and equipment | Renting vehicles and equipment for the business. |
| 20b | Rent or lease: other business property | Rent for an office, storefront, or workspace. |
| 21 | Repairs and maintenance | Fixing and maintaining business property and equipment. Improvements that extend its life depreciate instead. |
| 22 | Supplies | Materials the business consumes: stock, raw materials, shipping supplies. |
| 23 | Taxes and licenses | Payroll tax, sales tax, licenses, permits. Federal income tax is never deductible. |
| 24a | Travel | Business trips: airfare, hotels, and transport while away overnight. |
| 24b | Meals and entertainment | Business meals are 50% deductible; entertainment stopped being deductible in 2018. Expense splits the receipt for you. |
| 25 | Utilities | Phone, internet, and power for the business; often a partial percentage for a home office. |
| 26 | Wages | Salaries and wages paid to employees. Not you, and not contractors (line 11). |
| 27a | Other expenses | Anything that fits no line above, itemized in Part V of the form. |
Source: About Schedule C (Form 1040). Car and truck expenses can also use the standard mileage rate; see the IRS mileage rates page for the full table.
Your categories, ready for the form.
Every new Expense account starts with these 23 categories in place, so receipts land where the return expects them.