When you’re a sole proprietor, you have business income and expenses that need to be reported on a Schedule C.
If you use accounting software to track income and expenses, you can upload your profit and loss statement to your tax expert. If you don’t use accounting software, you’ll need to give us your income and expense info in an organized and complete manner. Don’t include individual receipts.
Select the items applicable to you to learn what totals to give to your Full Service tax expert:
Income
- Cash
- Credit Card payment amounts
- All 1099 forms you received related to your business
- Let your expert know if you’ve included these amounts in other payment forms
Common expenses
- Communication costs including mobile phones, data plans, internet or wireless services, land or fax lines, long-distance charges, voicemail or answering services, and call waiting
- If you use these for your personal life, too, only the amount used for your business is allowed as an expense
- Office supplies, software, stamps, envelopes, shipping materials, and cleaning supplies
- Licenses or permits required for your profession
- Fees and membership dues paid to professional associations or unions
- Education or certification related to your profession
- Gas for your vehicle
- Regular commuting to and from a fixed office wouldn't qualify
- Advertising costs, including business cards and websites
- Fees for attorneys, consultants, accountants, and other professionals
- Liability insurance, errors and omissions insurance, and surety bonds
- Credit card and bank fees
- Health care premiums
- Inventory, materials, supplies, equipment, tools, and furniture
Other expenses
- Rent paid for business property, land, and buildings
- Rent paid for equipment, machinery, copiers, and office furniture
- Utilities including gas, water, and electricity
- If these are also used for your personal life, only the amount used for your business is allowed as an expense
- Repairs and maintenance expenses
- Mortgage interest for business mortgage loans
- Interest paid for business loans
- Payroll taxes
- Health insurance for you and your family
- Payments made to independent contractors
Meal and travel expenses
- Meals for business meetings
- Meals for you and employees when traveling
- Flights, taxis, rideshares, rental cars, and lodging
Employee expenses
- Wages paid to employees
- Insurance premiums for employees
- Payments made to a retirement plan on your employees’ behalf
