Not tax advice. This checklist is general information to help you organize records. What you can deduct depends on your business and situation, and tax rules change. Check IRS.gov and talk to a qualified tax professional before you file.
If you get 1099 forms (1099-NEC, 1099-K or 1099-MISC) for freelance work, gig apps, a creative business or online selling, you probably report that income on Schedule C, "Profit or Loss From Business". You're taxed on profit, so every legitimate business expense you record lowers the income you pay income tax and self-employment tax on. The hard part is remembering everything in April. This checklist helps you track expenses as they happen.
The basic test: ordinary and necessary
The IRS describes deductible business expenses as costs that are both ordinary (common and accepted in your line of work) and necessary (helpful and appropriate for your business). Personal expenses aren't deductible. If something is used for both, such as your phone, internet or car, generally only the business-use portion counts, so you need a reasonable way to work out that percentage.
Schedule C expense checklist (by line)
Line numbers are from the current Schedule C (Form 1040). Use the list to set up categories in your spreadsheet or app.
| Line | Category | Examples to track |
|---|---|---|
| 8 | Advertising | Ads, boosted posts, business cards, website hosting for your business, Etsy or marketplace ad fees |
| 9 | Car and truck expenses | Business miles at the IRS standard rate, or actual costs × business-use %; plus business parking and tolls |
| 10 | Commissions and fees | Platform and payment fees (marketplace, payment-processor and payout fees), referral commissions |
| 11 | Contract labor | Payments to freelancers and contractors who work for your business |
| 13 | Depreciation and section 179 | Larger equipment such as a computer, camera or tools used in the business |
| 15 | Insurance (other than health) | Business liability, professional liability, business property insurance |
| 16 | Interest | Interest on business loans or a business credit card |
| 17 | Legal and professional services | Tax preparer, bookkeeper, attorney fees for the business |
| 18 | Office expense | Postage, printer ink, small office items, business software subscriptions |
| 20 | Rent or lease | Rented equipment, a studio, a coworking desk or storage unit used for the business |
| 21 | Repairs and maintenance | Repairs to business equipment |
| 22 | Supplies | Materials and supplies used in your work (not inventory you resell) |
| 23 | Taxes and licenses | Business licenses, permits, the employer share of payroll taxes |
| 24a | Travel | Airfare, lodging and transportation for business trips away from home |
| 24b | Deductible meals | Business meals, generally 50% deductible |
| 25 | Utilities | Business phone line, the business share of your phone and internet |
| 27b | Other expenses | Education that maintains your skills, professional dues, bank fees, other ordinary and necessary costs |
| 30 | Business use of home | Home office: simplified method ($5 per sq ft, up to 300 sq ft) or actual expenses on Form 8829 |
If you sell physical products, the cost of the items you sell is usually reported as cost of goods sold (Schedule C Part III), not as supplies.
Mileage: the most commonly missed deduction
Driving to clients, a post office, a supplier or between job sites can add up. If you use the standard mileage rate, the IRS business rate for 2026 is 72.5 cents per mile for January 1 – June 30 and 76 cents per mile from July 1 – December 31, 2026 (the IRS raised it mid-year). Commuting from home to a regular workplace generally doesn't count. Keep a log with the date, start and end location, purpose and miles for each trip, written at the time rather than rebuilt from memory later.
Home office
If you use part of your home regularly and exclusively for your business, you may qualify for the home office deduction. The simplified method is $5 per square foot of the office, up to 300 square feet. The regular method uses actual expenses (a share of rent or mortgage interest, utilities, insurance) on Form 8829. Measure your space and keep the numbers with your records.
Deductions that aren't on Schedule C
Some self-employed deductions go on Schedule 1 of Form 1040 instead, so they're easy to forget:
- The deductible part of self-employment tax
- Self-employed health insurance premiums (if you qualify)
- Contributions to a self-employed retirement plan, such as a SEP-IRA or solo 401(k)
Records to keep
- Receipts or invoices for each expense (a photo or PDF is fine; store them in one folder by month)
- Bank and card statements, ideally from an account used only for the business
- Your mileage log
- Every 1099 you receive, compared with your own income records
- Records of your quarterly estimated tax payments
The IRS generally recommends keeping records that support your return for at least three years, and longer in some situations.
A 10-minute weekly habit
- Log new income by client or platform, including fees taken out.
- Log new expenses with the category and business-use %.
- Add the week's business trips to your mileage log.
- Move a set share of income to a separate tax savings account.
- Check the date of the next quarterly estimated tax payment (the next one is January 15, 2027).