We have a comprehensive guide covering every Schedule C deduction line by line!
Quick answer — which line does a common expense go on?
- Software / SaaS subscriptions → Line 18 (Office expense) or Line 27a; 100%
- Business meals → Line 24b; 50% only (entertainment is 0%)
- Home office → Line 30 (Form 8829); simplified $5/sq ft up to $1,500
- Car / mileage → Line 9; 76¢/mile (from July 1, 2026) or actual — mileage log required. ⚠️ 2026 has two rates: 72.5¢ for miles driven Jan 1–Jun 30 (Notice 2026-10), 76¢ from Jul 1 (Announcement 2026-11). The rate follows the date you drove — total each half and add them.
- Self-employed health insurance → not Schedule C; it's a Schedule 1 adjustment to income
📋 Schedule C Deduction Categories (Lines 8–27b): ✅ Advertising (Line 8) — Website, Google Ads, business cards, social media ✅ Car & Truck (Line 9) — Standard mileage (76¢/mile from July 1, 2026) or actual expenses ✅ Contract Labor (Line 11) — Freelancers/subcontractors (issue a 1099-NEC if you pay them $2,000+ for 2026, up from $600) ✅ Insurance (Line 15) — Business liability, E&O, cyber, workers' comp ✅ Office Expenses (Line 18) — Supplies, software subscriptions, postage ✅ Rent/Lease (Line 20) — Office space, coworking, equipment leases ✅ Travel (Line 24a) — Flights, hotels, rental cars, conference fees ✅ Meals (Line 24b) — 50% deductible for business meals ✅ Utilities (Line 25) — Phone, internet (business-use portion) ✅ Home Office (Line 30) — Simplified ($5/sqft, max $1,500) or actual method
🧾 What the IRS actually expects for records Every expense needs a record establishing four things: the amount, the date, the place, and the business purpose. IRS Publication 463 requires documentary evidence (receipt or invoice) for lodging and for any other expense of $75 or more; below that a written record is acceptable. Vehicle use, travel and meals sit under the stricter rules of IRC §274(d) — records must be made at or near the time of the expense, so a mileage log reconstructed at audit time does not qualify. Digital records (emailed receipts, phone photos, PDFs) are fully accepted.
How long to keep it: 3 years from filing (the normal assessment window), 6 years if gross income was under-reported by more than 25%, and no limit on an unfiled or fraudulent return. Depreciated-asset records run for the depreciation period plus the assessment window.
📐 A worked year (illustrative): a freelancer with $94,200 gross income and $19,971 of Part II expenses has a tentative profit of $74,229 on Line 29; a $600 simplified home-office deduction on Line 30 leaves $73,629 net profit on Line 31, which carries to Form 1040 and forms the base for self-employment tax on Schedule SE. The full worked example is in the guide.
💡 Pro tip: ExpenseBot automatically maps your expenses to Schedule C categories and calculates deductions at year-end. Estimates — confirm with your tax professional.
🔗 Read the full guide: Schedule C Expense Guide