How does the Schedule C worksheet work?

Your year-end tax report includes a Schedule C Worksheet tab where you enter business income and deductions that aren't captured from receipts.

📝 What to fill in: • Business income — Gross receipts from all sources (auto-fills from bank if connected) • Home office expenses — Rent/mortgage, utilities, insurance, repairs + business-use % • Cost of goods sold — Inventory, purchases, labor, materials (if applicable) • Depreciation / Section 179 — Computer, furniture, vehicle, equipment • Vehicle info — Total miles, business miles, commuting miles

If a receipt was Set aside for tax review, the worksheet also shows it in Costs set aside for tax review with its date, merchant, category, and purchase cost. That table is a handoff list only: those costs are not added automatically to Line 13, Line 22, or another current deduction. Review whether each cost belongs in inventory/COGS, property basis, depreciation, Section 179, or another treatment. You can do this yourself or with a tax professional. Enter only the deduction you decide to claim in the relevant worksheet section; ExpenseBot never copies the full purchase cost into Line 13 automatically.

For US reports:

• ordinary office/software categories stay out of depreciation;
• a Small Tools category is shown as a de minimis safe-harbor candidate in Part V, not as depreciation;
• the de minimis treatment is an annual election you confirm when filing;
• a single tool or owned-equipment purchase over $2,500 is held for review rather than automatically deducted.

📊 How it works:

1. Generate your year-end report → Worksheet tab is created automatically
2. Fill in the worksheet fields (bank data auto-populates where available)
3. Click "Generate Schedule C" → ExpenseBot combines worksheet + expense totals
4. Downloads a pre-filled IRS Schedule C draft for your review

💡 Your expenses are already there — The worksheet just adds income and deductions that come from sources other than receipts (home office, depreciation, etc).

ExpenseBot organizes the evidence and arithmetic but does not choose your depreciation method or make a de minimis election for you.

US freelancers only. Canadian freelancers get the T2125 worksheet instead.