Where are "Communication Expenses" on the Schedule C?

[Jerry0000]

I was reviewing my business return from last year (Schedule C). While i'm positive i entered "Communication Expenses" into Turbo Tax i don't see them anywhere in the PDF copy of the return i have. It is not under Part III "Expenses" Nor Part V "Other Expenses". Where exactly are these Communication Expenses supposed to show up?  Side note, these expenses are from my office phone & Internet. 

[mesquitebean · Accepted solution]

"Communication expenses" (business cellphone service, second phone line for business, business Internet, etc.) are included in the figure shown for "Utilities" on Sch C, Line 25.    The TurboTax interview has you enter them as a separate expense category, but in the end it is added with Utilities.

If you look at the Schedule C Worksheet in Forms Mode,  the Sch C Line 25 is subdivided, and you will see that "Utilities" actually consists of 2 figures, one of which is the communication expenses, and the other is actual utilities (electricity, gas, water, etc.for a separate business property--NOT home office utilities, which are reported on Form 8829).  The only way to view this breakdown is by running the software program and looking at the Schedule C in Forms Mode, and you'll see the 2 separate figures.

Only the total of the two figures is shown on the actual Schedule C, Line 25.

[mesquitebean]

In the future, if you don't want the communication expenses combined with utilities on Line 25, then instead of entering them under "communication expenses" in the TurboTax interview, you could enter them in  Part V Other Expenses and appropriately label them with custom categories.

[mesquitebean]

If you have a home office, also be sure that any communication expenses that have to be listed and allocated in the "Home Office" interview (Form 8829, if applicable) are not deducted again in one of the Schedule C business expense categories.

[ckl36]

I don't know if this is referring to 2017 returns, but ... In regards to the 2017 return, in my "Interview," I entered Utilities in the Utilities section. I cannot find where I entered Communications expenses in the "Interview."

Schedule C Line 25 does not breakdown into Utilities and Communications. On my return Schedule C Line 25 actually includes my Communication expenses but not my Utility expenses. There is a Schedule C Worksheet that DOES include my Communication expenses that I DID NOT enter during the "Interview."  There is also a Utilities section and it DOES NOT include my Utilities expenses that I DID entered during the "Interview."

So, can someone explain

   (a) where in the "Interview" I would have entered my Communications expense,
   (b) if my Communication expenses were not entered during the "Interview" then how did my Communications expenses get included on my Schedule C and
   (c) why my Utilities expenses were not included on my Schedule C?

[mesquitebean]

@ c_leighton
I don't have any way of knowing where you entered them, or if you used Online TurboTax or desktop TurboTax (CD/download).   I can make you screenshots for the desktop product that shows how entries are made and how they flow.  I can't post them in a comment, so I'll need to post them in another answer on this page.

[mesquitebean]

NOTE:  If something is in the "Communications" category on the Schedule C worksheet that you didn't enter, and are not applicable, they may have transferred in from your 2016 return--IF you used TurboTax last year and chose the option to transfer in the 2016 data.  In that case, they can be edited/deleted if incorrect.

[mesquitebean]

c_leighton:

This is actually a thread from a year ago for 2016 returns.   The principle is the same for 2017.  Schedule C, Line 25 still shows the total of communication expenses and non-home utilities expense, but there is the addition of the Schedule C Worksheet.

Here are some screen images that may help you understand how things are flowing in the 2017 desktop product.

When you go through the interview (step-by-step mode), you'll encounter a screen showing a list of business expenses. (see screen image #1) There you can choose the communications category and the utilities category (for utilities not in a home).  Entries from that interview flow to the Schedule C Worksheet, and then to Schedule C.

NOTE:   "utilities" on Line 25 refers to those utilities that are NOT in a home office, but are in a separate office outside the home or for a business property outside the home.   Utilities for a home office are instead reported on Form 8829 (home office expenses).

The actual printed Schedule C will not show the breakdown of Line 25.  The breakdown is only shown on the Forms Mode version of Schedule C and the Sched C Worksheet.

[changbel]

This is a better way, I think to list the Communication Expenses under 'Other Expenses' on Line 27a of Sch. C because on Sch. C Part V, the description you typed in 'Communication Expenses' on Sch. C Worksheet will show there.