How to track freelance expenses for Schedule C

To track freelance expenses for Schedule C, keep business spending in a separate account or card, save a receipt or note for every expense, and sort each one into its Schedule C line as you go, not in April. Add mileage and your home office, and do a short review once a month. This is a plain-words guide, not tax advice.

What is Schedule C?

Schedule C is the IRS form US sole proprietors and most single-member LLCs use to report business income and expenses. Income minus expenses is your profit, and both income tax and self-employment tax are figured from it. Every legitimate expense lowers that profit.

The lines most freelancers use

Line	What goes there	Examples
8	Advertising	Ads, sponsored posts, business cards
9	Car and truck expenses	Business mileage at the standard rate
10	Commissions and fees	Marketplace fees, payment processing fees
11	Contract labor	Subcontractors you paid (think 1099-NEC)
15	Insurance (not health)	Professional liability insurance
17	Legal and professional services	Accountant, lawyer
18	Office expense	Postage, printer ink, small office items
22	Supplies	Materials used in your work
23	Taxes and licenses	Business licenses, some fees
24	Travel and meals	Business travel; meals are generally 50%
25	Utilities	A business phone line
27a	Other expenses	Software subscriptions, education, bank fees
30	Business use of home	The home office deduction

Your accountant may sort a few things differently. Consistency matters more than perfection.

Step 1: Separate the money

Use one bank account and one card for business only. It makes every other step easier. When a statement arrives, everything on it is a business transaction, and you’re not squinting at a grocery receipt wondering if the printer paper was in there.

Step 2: Keep proof for every expense

For each expense, keep what you bought, when, from whom, how much, and why it was for business. A photo of the receipt or the emailed receipt is enough. For meals, add who you met and what you discussed.

Step 3: Log mileage as you drive

If you use your car for business, log each trip: date, where you went, why, and miles. For 2026, the IRS standard mileage rate is 72.5 cents a mile. A log written months later is much harder to defend than one written the same week.

Step 4: Measure your home office

If part of your home is used regularly and only for business, you may qualify for the home office deduction. The simplified method is $5 per square foot, up to 300 square feet, so up to $1,500 a year. It goes on line 30.

Step 5: A 20-minute monthly routine

Once a month:

1. Import or download your business account and card statements.
2. Give every transaction a Schedule C line.
3. Match receipts to anything over a few dollars.
4. Add mileage for the month.
5. Check profit, and move your tax set-aside. Our quarterly tax calculator can help pick the amount.

Do that twelve times and tax season becomes an afternoon, not a weekend.

Common mistakes

• Mixing personal and business spending on the same card.
• Forgetting small recurring costs, like software, that add up over a year.
• Skipping mileage because the trips felt short.
• Deducting personal things. Your gym probably isn’t a business expense, however good it is for your mood.
• Losing 1099-NEC records for contractors you paid. See 1099-NEC.

How Kibble helps

Kibble’s Business mode does this routine with you:

• Statement import from CSV or QFX, with duplicates skipped and the ending balance checked. See Import bank and card statements.
• Schedule C lines suggested for each expense and remembered per payee.
• Receipts attached to expenses, including business receipts from your email.
• Mileage at the 2026 rate and the simplified home office deduction. See Mileage and home office.
• A year-end ZIP with the Schedule C summary, every transaction, the mileage log and receipts for your accountant. See 1099s and the year-end ZIP.

The short version

• Separate account, receipt for everything, Schedule C line on every expense.
• Log mileage the same week, and measure your home office.
• Twenty minutes a month beats a lost weekend in April.