Schedule C deductions for consultants, line by line

If you consult as a sole proprietor or single-member LLC, your business goes on Schedule C. Here are the lines you'll actually use.

By the Tallibook team · Updated October 11, 2026 · 7 min read

Line 1: what you earned

Line 1 (gross receipts) is everything clients paid you: project fees, retainers, workshop fees and speaking fees. On a cash basis, count money when you receive it, not when you invoice it.

The expense lines consultants use most

Line 8, Advertising: your website, domain, LinkedIn ads, business cards.
Line 9, Car and truck: business miles at the IRS rate (72.5¢ for January to June 2026, 76¢ from July 1), plus parking and tolls.
Line 11, Contract labor: specialists and subcontractors you bring onto projects. Payments of $2,000 or more made in 2026 to one person may need a 1099-NEC ($600 for 2025 payments).
Line 13, Depreciation and section 179: laptops, monitors and other gear that lasts years. Your accountant chooses how to write it off.
Line 15, Insurance: professional liability (E&O) and general liability.
Line 17, Legal and professional services: your CPA, bookkeeper, contract reviews.
Line 18, Office expense: software, subscriptions, supplies and postage.
Line 20b, Rent: a coworking desk or office.
Line 24a, Travel: flights, hotels and transport for overnight trips to client sites.
Line 24b, Meals: client meals, usually 50% deductible.
Line 25, Utilities: the business share of your phone and internet.
Line 27b, Other expenses: bank and payment fees, professional dues, courses that keep your skills current.
Line 30, Business use of home: a space used regularly and only for work.

Meals, gifts and travel: the rules people get wrong

Client meals are usually 50% deductible. Write down who you met and the business reason.
Gifts to clients are capped at $25 per person per year.
Travel needs an overnight stay away from your tax home. A day trip's lunch is a meal, not travel.

What doesn't go on Schedule C

Your own health insurance and your own SEP-IRA or solo 401(k) contributions go on Schedule 1, not Schedule C.
Money you pay yourself (owner draws) isn't an expense.
Everyday clothes, even a suit you only wear to client meetings.
Fines and penalties.

Make it easy on yourself in April

The trick is categorizing as you go. In Tallibook every category already maps to a Schedule C line, receipts are read for you, and your accountant gets a tax pack with the Schedule C summary, profit and loss and mileage log.

Common questions

Can I deduct my home office as a consultant?

Yes, if you use a specific space regularly and only for the business. The simplified method is $5 per square foot, up to 300 square feet.

Is a coworking membership deductible?

Yes. It's rent for business space (line 20b).

Are meals with a client 100% deductible?

Usually not. Business meals are generally 50% deductible.

Sources

General information for US sole proprietors, checked October 2026. Not tax advice.