Schedule C Category definitions

Importantly, this is not tax advice. Please consult with a licensed tax expert.

When recording expenses or credits in your Ledger, Flipwise lets you (optionally) assign each entry to a Schedule C category in line with IRS guidelines. This keeps your records organized according to IRS classifications and ensures accurate reporting of business expenses. Because of this, custom categories aren’t allowed as using them would break alignment with IRS requirements.

Correct categorization also helps you maximize deductions and reduce the risk of errors at tax time. By assigning the appropriate Schedule C category to each entry, you streamline tax preparation and stay compliant with IRS regulations.

If the expense you are adding to the Ledger does not fit into any of the existing Schedule C categories, you may select "other" or give it no category at all as it is not a requirement.

For a comprehensive understanding of Schedule C categories and their definitions, you can refer to this detailed article from QuickBooks.