Schedule C Categories Explained: A Freelancer’s Cheat Sheet

Schedule C (Form 1040) is where sole proprietors and freelancers report business income and expenses. Getting your categories right means bigger, defensible deductions. Here's what each major line actually means.

The most common Schedule C expense categories

• Advertising — ads, business cards, website, marketing tools.
• Car & truck — mileage or actual vehicle costs for business driving.
• Contract labor — payments to subcontractors and freelancers you hire.
• Supplies — items used up within the year for your work.
• Office expense — postage, small office items, software.
• Legal & professional — accountants, lawyers, consultants.
• Travel & meals — business trips (meals are generally 50% deductible).
• Utilities & phone — the business-use portion.

Home office deduction

If you work from a dedicated space, you can deduct a portion of rent, utilities and insurance — or use the simplified $5/sq ft method (up to 300 sq ft).

Why categorization matters

Correct categories make your Profit & Loss accurate, your deductions defensible, and your accountant's job cheaper. MoneyFeed auto-categorizes every expense into IRS-aligned buckets, so your Schedule C summary is ready whenever you are.