On Schedule C, Line 22 is designated for reporting "Supplies" expenses. These include materials and supplies used in your business during the tax year. According to the IRS instructions, you may deduct the cost of supplies only to the extent you actually consumed and used them in your business during the tax year. If you maintain no inventory or records of use for incidental supplies, you may deduct the cost of supplies you actually purchased during the tax year, provided that this method clearly reflects income.
Deductible Supplies
- Office supplies (reported on Line 18) and postage are included under Line 18, which is a separate line for office-related expenses.
- Books, professional instruments, and equipment may be deductible if you normally use them within a year. However, if their useful life extends substantially beyond one year, you must recover their cost through depreciation rather than deducting the full cost in the year of purchase.
Reporting Requirements
- Supplies not included in Part III (such as inventory) should be reported on Line 22.
- Ensure that supplies are used for business purposes and are not personal or household in nature.
- Do not include the cost of business equipment or furniture on Line 22; those are typically depreciated and reported elsewhere.
Source:
Schedule C Instructions (2025)
Disclaimer: Always verify details with the current IRS Form 1040 and Schedule C instructions, as well as your state’s Department of Revenue forms and guidelines. Tax rules may vary based on individual circumstances and jurisdiction.