Schedule C Deductions: What US Small Businesses Can Write Off
Ordinary and necessary business expenses on Schedule C — home office, mileage, software, and how clean books support an audit-ready return.
Schedule C basics
Schedule C (Profit or Loss from Business) reports sole proprietor income and expenses on Form 1040. Line 31 net profit flows to Schedule SE for self-employment tax.
Common deductible categories
Advertising, contract labor, insurance, legal/professional fees, office expense, supplies, travel, meals (50%), utilities, and depreciation. Each needs contemporaneous records — bank feeds and categorized transactions matter.
Documentation the IRS expects
Receipts, invoices, bank statements, and a chart of accounts that maps expenses to tax-relevant categories. Reconciled accounts reduce discrepancies between books and filed returns.
Categorize expenses for Schedule C filing