ETAX1099BLOG

Form 1099 Schedule C Business Expenses | Tax Tips

Each penny is important for a common person and that is the main reason why we see numerous Form 1099 tax returns from the independent contractors. Few contractors are losing their dollars every year by failing to track their business expenses. By making note of every expense each year, you can save a lot of money for yourself instead of giving them to the taxes.

1099 schedule c

Schedule C is used to state the profit income or loss from your business with the Internal Revenue Service (IRS). This is filed with the use of your 1099 Forms. To get the better view about the types of expenses, just have a look at the below table. The table will list each type of business expense that comes in the Schedule C. In addition, you will also find the examples for a type of expense includes and does not include.

Schedule C – Common 1099 Expenses

Line Type Acceptable Expenses Unacceptable Expenses
8 Advertising ·         ads,

·         branded promo items,

·         events,

·         flyers,

·         signs, and

·         trade shows

·         Non-branded gifts

·         Office holiday parties,

9 Car Expenses ·         bus fare repairs,

·         gas,

·          insurance,

·          maintenance,

·         registration,

Expenses when using Standard Mileage Rate
13 Depreciation and Section 179 ·         cars

·         computers,

·         furniture,

·          office equipment,

·          tools,

Car depreciation when you are using Standard Mileage Rate
15 Business Insurance ·         fire,

·         flood,

·         general liability,

·         malpractice,

·         property,

·         theft,

·         workers comp

·         auto insurance,

·         disability insurance

·         health insurance,

18 Office Expenses ·         cleaning services for office,

·         general office maintenance

·         home office costs,

·         rent,

·         utilities

22 Supplies that you use and replace ·         Office decorations and

·         other office related expenses

24b Meals/ Entertainment Meals or entertainment related expenses that you had with your client ·         meals for yourself,

·         dues for athletic clubs

24a Travel ·         airfare or rental cars,

·         local transportation

·         lodging,

·         meals

·         personal costs,

27a Other Expenses ·         association dues

·         banking fees,

·         education to improve skills,

Expenses that comes with own separate categories
30 Home Office Deduction ·         business portion of rent,

·         insurance,

·         mortgage interest

·         repairs,

·         utilities,

Expenses when using the Simplified Method

Schedule C – Less Common 1099 Expenses

Line Type Acceptable Expenses Unacceptable Expenses
10 Commission and Fees Commissions or fees that are paid to generate revenue City license fees and the commissions paid to the employees
11 Contract Labor Payments dare done to the independent contractors Wages that are paid to the employees, lawyer or other professional
12 Depletion National resources used when the business mines them Gas that is used for driving, home/office utilities
14 Employee Benefit Programs ·         accident or liability insurance

·         educational assistance,

·         health or life insurance

 

Own health and retirement benefits

16a Interest (mortgage) Interest paid on a mortgage that is used for property used for business Interest on primary home
16b Interest (car, other) ·         business lines of credit,

·         car payment interest,

·         credit cards

Interest on personal loans, home office mortgage interest
17 Legal/Professional Services Fees paid to the

·         accountants,

·         attorneys,

·         tax preparers,

Services provided by the persons employed by you.
19 Pension Plans ·         401(k),

·         keogh plans,

·         profit sharing plans

Contributions that are made to own pension plan
20a Rent or Lease (vehicles, equipment) ·         equipment,

·         machines,

·         vehicles

Car lease payments if you use Standard Mileage Rate
20b Rent or Lease (other business property) Office or land rent with inclusion of any government taxes Rent for home office, rent for trade show booths
21 Repairs and Maintenance ·         fixing or

·         repainting office,

·         replacing equipment

Car related repairs, and other significant improvements
23 Taxes/Licenses ·         business taxes,

·         required business licenses

·         state/local licenses,

Self-employment tax or personal income tax
25 Utilities ·         garbage,

·         gas,

·         office electric,

·         water

Utilities that are required for  your own house
26 Employee Wages ·         bonuses,

·         commissions,

·         salaries

Employee benefits,

payments that are made to yourself

Hope this article gave a clear picture about the business expenses of Form 1099 Schedule C. For further assistance and Clarifications, you are just a call away from us to reach our customer support team at 703-229-0326 or drop a mail at support@tax2efile.com. We are happy to assist and serve you at any time.

By admin

Leave a comment

Your email address will not be published. Required fields are marked *