Skip to main content
Apr 16, 2024 6:18 AM UTC
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

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

Apr 16, 2024 8:02 AM UTC

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.