Form 1099 Schedule C Business Expenses

In this day and age, every penny counts, and the tax returns of independent contractors are a testament to this. Contractors can lose out on thousands of dollars each year simply for not tracking business expenses. These expenses (that you’re incurring anyway) can be written off each year so you can keep more of your money for yourself instead of losing it to taxes. Schedule C, which is used to report income or loss from a business with the IRS, can be filed with your 1099 forms.

So what sort of expenses are we talking about? We’ve compiled a list of each type of business expense you’ll find on the Schedule C, as well as some examples of what that type of expense includes or doesn’t include.


 

Common 1099 Expenses
Type
Line
Acceptable Expenses
Unacceptable Expenses
Advertising
8
Flyers, signs, ads, branded promo items, events, trade shows
Office holiday parties, gifts that aren’t branded
Business Insurance
15
Fire, theft, flood, property, malpractice, general liability, workers comp
Health insurance, auto insurance, disability insurance
Car Expenses
9
Gas, insurance, registration, repairs, maintenance, bus fare
Expenses if you use Standard Mileage Rate
Depreciation and Section 179
13
Computers, office equipment, tools, furniture, cars
Car depreciation if using Standard Mileage Rate
Home Office Deduction
30
Business portion of rent, utilities, repairs, insurance, mortgage interest
Expenses if you use the Simplified Method
Meals/ Entertainment
24b
Meals or entertainment that you had with a client
Meals for yourself, dues for athletic clubs
Office Expenses
18
Cleaning services for office, general office maintenance
Home office costs, rent, utilities
Supplies
22
Any supplies you use and replace
Office decorations and some other office expenses
Travel
24a
Lodging, airfare or rental cars, local transportation
Personal costs, meals
Other Expenses
27a
Education to improve skills, banking fees, association dues
Expenses with their own separate categories



Less Common 1099 Expenses



Type
Line
Acceptable Expenses
Unacceptable Expenses
Commission and Fees
10
Commissions/fees paid to generate revenue
City license fees, commissions paid to employees
Contract Labor
11
Any payments made to independent contractors
Wages paid to employees, lawyer/professional fees
Depletion
12
The use of natural resources if your business mines them
Gas for driving, home/office utilities
Employee Benefit Programs
14
Health or life insurance, educational assistance, accident or liability insurance
Your own health/retirement benefits
Employee Wages
26
Salaries, commissions, bonuses
Employee benefits, payments to yourself
Interest (mortgage)
16a
Interest paid on a mortgage for property used for business
Interest on primary home
Interest (car, other)
16b
Credit cards, business lines of credit, car payment interest
Interest on personal loans, home office mortgage interest
Legal/Professional Services
17
Fees paid to attorneys, tax preparers, accountants, etc.
Services provided by your employees
Pension Plans
19
401(k), Keogh plans, profit sharing plans
Contributions made to your own plan
Rent or Lease (vehicles, equipment)
20a
Machines, equipment, vehicles
Car lease payments if you use Standard Mileage Rate
Rent or Lease (other business property)
20b
Office or land rent, including any government taxes
Rent for home office, rent for trade show booths
Repairs and Maintenance
21
Repainting office, fixing or replacing equipment
Car related repairs, significant improvements
Taxes/Licenses
23
Business taxes, state/local licenses, required business licenses
Self-employment tax or income tax
Utilities
25
Office electric, gas, garbage, water
Utilities for your house

For more information on your 1099 filings, or if you have any questions, you can contact ExpressTaxFilings’s headquarters in Rock Hill, SC at (704) 839-2270 Monday through Friday from 9 a.m. to 6 p.m., EST. You can also email at support@expresstaxfilings.com or live chat with us at www.expresstaxfilings.com.

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