What are the expense categories on Schedule C?

Schedule C, Part II lists them by line: advertising (8), car and truck (9), commissions and fees (10), contract labor (11), depreciation (13), insurance (15), interest (16), legal and professional services (17), office expense (18), rent or lease (20), repairs (21), supplies (22), taxes and licenses (23), travel and meals (24), utilities (25), wages (26), and other expenses (27a). Home office is figured separately on line 30.

What can a freelancer write off on Schedule C?

Any expense that is ordinary and necessary for your business: software and subscriptions, a portion of your phone and internet, business travel, 50% of business meals, contractor payments, professional fees, supplies, business insurance, and a home office if you use part of your home regularly and exclusively for work. Personal costs and owner draws are not deductible.

Can I deduct a home office as a single-member LLC?

Yes, if a part of your home is used regularly and exclusively for business. You can use the simplified method ($5 per square foot, up to 300 square feet) or the actual-expense method on Form 8829. It flows to line 30 of Schedule C.

Are business meals fully deductible?

Generally no — business meals are 50% deductible in most years. They go on line 24b of Schedule C. Keep the receipt and note the business purpose and who you met with.

Do owner draws count as a business expense?

No. Moving money from your business account to yourself is an owner draw against equity, not a deductible expense. Recording draws as expenses is the most common single-member LLC bookkeeping mistake and it overstates your deductions.