If you freelance or run a single-member LLC, your business deductions live on Schedule C of your personal Form 1040. Knowing which category each expense belongs to — and what actually qualifies — is the difference between a clean filing and money left on the table. (General information, not tax advice — confirm with a tax professional or the current IRS Schedule C instructions.)
| Line | Category | What it covers |
|---|---|---|
8 | Advertising | Website, ads, business cards, promotional content, sponsored posts. |
9 | Car & truck | Business mileage (standard rate) or actual vehicle costs — not commuting. |
11 | Contract labor | Subcontractors / 1099 contractors you paid to do the work (issue 1099-NEC if $600+). |
15 | Insurance | Business insurance (liability, E&O). Not health insurance — that goes on Schedule 1. |
17 | Legal & professional | Accountant, bookkeeper, lawyer, tax prep for the business portion. |
18 | Office expense | Software subscriptions, postage, small office costs not counted as supplies. |
22 | Supplies | Consumables used in the work — materials, small tools, printer ink. |
23 | Taxes & licenses | Business licenses, permits, and certain business taxes (not federal income tax). |
24 | Travel & meals | Business travel (lodging, airfare); business meals are generally 50% deductible. |
25 | Utilities | Business phone and internet (business-use portion), utilities for a business space. |
27a | Other expenses | Anything legitimate that has no line above — bank fees, dues, education. Itemize in Part V. |
30 | Home office | Simplified ($5/sq ft, up to 300) or actual (Form 8829). Must be regular + exclusive use. |
General information, not tax advice — categories and limits change and depend on your situation. Confirm with a tax professional or the current IRS Schedule C instructions.
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.
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.
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.
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.
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.