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April 16, 2024
Question

I'm a self-employed home caregiver. Should I categorize cleaning supplies and other client purchases as Materials & Supplies or as Other Business Expenses? Confused. Thx

  • April 16, 2024
  • 1 reply
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The IRS definition for Materials & Supplies appears to apply if you make items to sell. Not sure if that is still the case.

1 reply

April 16, 2024

Hi there, KLS4.

 

I can share some information on how you can properly categorize transactions in QuickBooks Self-Employed.

 

According to IRS Schedule C, you must select specific categories for each type of transaction. Cleaning supplies, for example, must be categorized as Office expenses, while other client purchases can be temporarily categorized as Other Business Expenses if you're still unsure which category they belong to. 

 

Here's an article you can check for more information: Schedule C and expense categories in QuickBooks Solopreneur and QuickBooks Self-Employed.

 

I've also added this resource as a future reference: QuickBooks Self-Employed annual tax guide.

 

Let me know if you have other concerns or have follow-up questions about categorizing transactions. I'll be happy to assist you.