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Self employed
Yes. New categories should be listed under Miscellaneous expenses or if you would consider something a supply and regularly used for your business you can choose that category.
Likewise you can also choose the closest category description for the expenses in your accounting software that match the IRS description of expense.
It's important not to lump all expenses into one category such as utilities or legal fees or taxes, when they are operating expenses. Product for resale as example should definitely be listed separately as materials or supplies which have a direct impact on your gross receipts.
As you can see by looking at the Schedule C (click the link), the IRS has categories on the form similar to the TurboTax interview.
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‎April 13, 2023
6:13 AM