Schedule C expense categories, line by line
Schedule C is where sole proprietors and single-member LLCs report business income and expenses. Putting expenses on the right lines keeps your return clean and your numbers easy to defend.
Key takeaways
- Part II has expense lines 8 through 27b. Anything without its own line goes in Part V, Other expenses, which carries to line 27b.
- Car expenses go on line 9, with details in Part IV or on Form 4562.
- Meals go on line 24b at the deductible amount, which is usually 50%.
- The home office deduction goes on line 30, not in Part II.
The expense lines
| Line | Category | Examples |
|---|---|---|
| 8 | Advertising | Ads, website hosting, business cards, listing fees |
| 9 | Car and truck expenses | Standard mileage or actual costs, business parking and tolls |
| 10 | Commissions and fees | Referral fees, platform and marketplace fees |
| 11 | Contract labor | Payments to independent contractors |
| 12 | Depletion | Natural resources such as timber or minerals |
| 13 | Depreciation and section 179 | Computers, cameras, tools, and equipment, via Form 4562 |
| 14 | Employee benefit programs | Benefits for employees, not for yourself |
| 15 | Insurance (other than health) | Liability, professional (E&O), business property |
| 16a / 16b | Interest: mortgage / other | Business loans, business share of credit card interest |
| 17 | Legal and professional services | Accountants, attorneys, tax preparation for the business |
| 18 | Office expense | Postage, printer ink, small office items |
| 19 | Pension and profit-sharing plans | Contributions for employees |
| 20a / 20b | Rent or lease: vehicles and equipment / other property | Equipment rental, office or studio rent |
| 21 | Repairs and maintenance | Repairs to business equipment or property |
| 22 | Supplies | Materials and supplies used up in the business |
| 23 | Taxes and licenses | Business licenses, payroll taxes, certain sales taxes |
| 24a | Travel | Airfare, lodging, and transportation for overnight business trips |
| 24b | Deductible meals | Business meals, generally at 50% |
| 25 | Utilities | Business phone and internet, utilities for a business location |
| 26 | Wages | Employee wages, not draws you pay yourself |
| 27a | Energy efficient commercial buildings deduction | Rare for most sole proprietors; Form 7205 |
| 27b | Other expenses (from line 48) | Software subscriptions, education, dues, bank fees |
Lines people often get wrong
- Other expenses on 27a. On the current form, other expenses itemized in Part V carry to line 27b; 27a is the energy efficient commercial buildings deduction.
- Health insurance on line 15. Self-employed health insurance is usually deducted on Schedule 1, not Schedule C.
- Paying yourself as wages. Owner draws aren’t wages and aren’t deductible.
- Meals at 100%. Most business meals are 50% deductible, and entertainment isn’t deductible.
- Gas plus mileage. With the standard mileage rate, fuel and repairs are already included. See the 2026 mileage rate.
Line 30: business use of your home
The home office deduction has its own line. Use the simplified method ($5 per square foot, up to 300 square feet) or Form 8829 for actual expenses. Our home office guide walks through both.
Frequently asked questions
Where do software subscriptions go on Schedule C?
Most preparers list ongoing software subscriptions under Other expenses in Part V, which carries to line 27b. Some put small items under office expense on line 18. Be consistent from year to year.
Where does my phone bill go?
The business share of your phone and internet usually goes on line 25, utilities.
Is a laptop a supply or depreciation?
Equipment that lasts more than a year is generally depreciated or expensed under section 179 on line 13 via Form 4562. Lower-cost items may qualify for the de minimis safe harbor election.
Sources
This guide is general information for U.S. federal taxes, current as of October 21, 2026. It isn’t tax, legal, or accounting advice. Talk to a qualified professional about your situation.
Keep the records
this guide asks for.
spentr captures receipts, business miles, and rental hours as they happen, so they’re ready when you file.