The main categories follow the expense lines on IRS Schedule C (Form 1040); main lines include advertising, car and truck, commissions and fees, contract labor, depreciation, insurance, interest, legal and professional services, office expense, rent or lease, repairs, supplies, taxes and licenses, travel and meals, utilities and wages. The small business version of ProfitDrawer's bookkeeping spreadsheet has room for 20 expense categories, so you can name yours to match these lines.
Main lines from the 2025 Schedule C instructions (tax year 2025, filed in 2026):
| Line | Category |
|---|---|
| 8 | Advertising |
| 9 | Car and truck expenses |
| 10 | Commissions and fees |
| 11 | Contract labor |
| 13 | Depreciation and section 179 |
| 15 | Insurance (other than health) |
| 16 | Interest |
| 17 | Legal and professional services |
| 18 | Office expense (including office supplies and postage) |
| 20 | Rent or lease |
| 21 | Repairs and maintenance |
| 22 | Supplies |
| 23 | Taxes and licenses |
| 24 | Travel and meals |
| 25 | Utilities |
| 26 | Wages |
| 12, 14, 19 | Depletion, employee benefit programs, pension and profit-sharing plans |
| 30 | Business use of your home |
Anything that fits no line, such as software subscriptions or bank fees, goes under other expenses. To be deductible, an expense must be ordinary and necessary for your business; the personal part of a mixed expense is not deductible, and business meals are generally limited to 50%.
Picking categories that match these lines at the start of the year saves re-sorting receipts at tax time.
General information, not tax advice.
Source: Instructions for Schedule C (Form 1040) (2025) · Updated
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General information, not tax, legal or financial advice. Check the rules for your state and your situation.