Advertising and promotional costs like print or media ads, business cards, mailers, brochures, wavers out front, signs, pens and give-away items with the company name, samples or freebies to promote business. This also includes any sponsorships like buying an advertisement in a high school sports program to promote your business.
Do not include entertainment related expenses (meals, events, etc.) you used to promote your business in this category, or office holiday parties, gifts (e.g. books).
There are large ticket items for your business that cost more than $2,500. This includes the grand total of a project; for example, all the supplies and labor to remodel a room in your business resulted in a single purpose.
Commissions, inspection fees, membership dues you pay for trade associations, and fees for subscriptions to trade publications. You may also include bank fees, credit card processing fees, and other transaction fees you paid. In general, any fee which must paid in the course of operating your business.
This includes any payments to people not considered employees who performed a service for your business. Any payments made to independent contractors; e.g., a contracted web developer, IT technician, courier, etc.
Don’t include any payments here that you include elsewhere (for example, if you hired a repair person and wrote that off to the category repairs and maintenance)
Insurance intended to protect your business (e.g. fire, theft, flood, property, malpractice, errors and omission, general liability, malpractice, etc.).
Do not use this to report auto, health care, life or disability insurance.
Interest on loans to finance your business, or credit card charges for business expenses.
Fees for attorneys, CPA, business consultants, payroll services, and bookkeepers.
This include the amount you paid for your tax preparation. Note: for your tax return preparation fees, you will need to apportion the amount of your fee between business and personal.
This includes costs for website services, Internet hosting fees, domain names, cloud storage fees, etc.
Expenses of running your office, such as monthly costs for service apps (e.g., Dropbox), computer programs (e.g., Office 365, QuickBooks), merchant account fees, and most other software. You can also include costs for photocopying, printing, faxing, etc.
This is for leasing a vehicle, machinery or some equipment for your business. Examples include rental of a tool.
This is for payments of office rental or rental of other spaces for storage and any real property leases.
In general, you’ll use this category to report expenses that do not materially increase the value or life of the property. In other words, an item broke and you had it fixed. Also use this category for the cost of products and supplies you used to maintain your business and keep your equipment operating.
This includes tangible, traditional office items, like pens, staplers, printer paper, folders, USB thumb drives, printer ink cartridges, toner, etc. The IRS also includes postage in office supplies.
Only items that cost less than $2,500 are included here. Examples include a new printer, scanner, computer, bookcase, and a display cabinet.
Use this category for business taxes, permits, licenses, and dues. Medicare and social security that you pay on employees goes in this category as well. Do not use this category for sales tax you collected on merchandise that is turned over to the city, county or state.
Travel costs related to business trips (e.g. hotel lodging, airfare, train, bus, rental car, taxi, Uber/Lyft, or other local transportation). The travel must be away from your residence and primarily for business. The expenses have to be business related.
You can claim meal expenses incurred while travelling for work as well as meals that are business related. The meal must be directly related to business activities, and the meal cannot be lavish or extravagant, and you or an employee must be present at the meal. Note: this category previously included entertainment expenses.
Beginning January 1, 2018, entertainment expenses are no longer a deductible expense.
Also, for the years 2021 -2022, business meals are 100% deductible.
This includes your utility expenses for your business.
If you have a home office, do not list your utilities expenses here. You will deduct those on your home office deduction form.
Include only the portion of your cell phone and/or telephone line that is directly used for business. If your cell phone is used for both personal and business use, determine the percentage used for business vs. personal, and report only the business portion amount. Example: if you used your cell phone 75% of the time for business all year long, and your monthly cell phone bill is $100, you would report $900. (Here’s the math: 12 months x $100 = $1,200. Seventy-five percent (75%) of $1,200 = $900.)
Your cost for Internet access; e.g., Broadband Internet WiFi service at your business.
This amount is for wages, salary, and bonuses paid to your employees.
If you file a Schedule C, so do not include amounts that you paid to yourself and you should not be on your own payroll.
If your business is a Corporation, your officer wages should be listed separately.