Schedule C expense categories, line by line
Schedule C is where sole proprietors and single-member LLCs report business income and expenses. Sorting expenses into the right lines all year makes tax time far easier.
The lines people use most
- Line 8 Advertising
- Line 9 Car and truck expenses: the standard mileage rate or actual costs at your business share
- Line 11 Contract labor: people you paid who aren't employees
- Line 13 Depreciation and section 179: equipment that lasts
- Line 15 Insurance, other than health
- Line 17 Legal and professional services
- Line 18 Office expense and line 22 supplies
- Line 24a Travel and line 24b meals, usually half
- Line 25 Utilities, including the business share of your phone
- Line 27b Other expenses, listed in part V
- Line 30 Business use of your home
Your car
You can use the standard mileage rate or your actual costs times your business share. In 2026 the rate was 72.5 cents a mile from January 1 to June 30, and 76 cents from July 1. Keep a log of business miles: the IRS expects one either way.
Self-employment tax
On top of income tax, you pay 15.3% self-employment tax on 92.35% of your profit (12.4% social security up to $184,500 of earnings in 2026, and 2.9% Medicare). Half of it is deducted from your income.
Common questions
Can I deduct my phone?
Yes, the business share. If you use it half for work, deduct half on line 25.
What's the qualified business income deduction?
Most small businesses can also deduct up to 20% of their profit. It's limited at higher incomes, and it's now permanent.
General information for the 2026 tax year from the IRS. Check the Schedule C instructions or a tax professional for your situation.