What this line means
The cost of office supplies, postage, small office equipment, and other office-related expenses that are consumed during the year. This includes printer ink, paper, pens, stamps, shipping supplies, cleaning supplies for your office, and software subscriptions used for business. Items that last more than a year (furniture, computers) generally go on line 13 (depreciation) instead.
Does this apply to you?
- You buy office supplies — paper, ink, pens, binders, folders — for your business
- You pay for postage, shipping labels, or a PO Box for your business
- You subscribe to business software — QuickBooks, Microsoft 365, Google Workspace, Slack
- You buy small office items that are used up within the year
- You pay for printing, copying, or document services
Easy to overlook
Software subscriptions are office expenses Monthly subscriptions to business software — accounting software, project management tools, cloud storage, email services, design tools — are deductible on line 18. A sole proprietor paying $25/month for QuickBooks, $10/month for cloud storage, and $55/month for Adobe Creative Cloud has $1,080 in deductible office expenses from subscriptions alone. Track these recurring charges. 1 General filing pattern — missed small recurring office deductions
Postage and shipping supplies If you ship products to customers, the cost of boxes, tape, labels, and postage is a deductible business expense. This goes on line 18 unless you include it in cost of goods sold. Pick one place and be consistent. 2 IRS Schedule C instructions — Line 18
Watch out for this
Deducting a laptop or desktop computer on line 18 instead of depreciating it on line 13. Office expense is for consumable items — things used up within the year. A computer has a useful life of several years and must be depreciated (or expensed under Section 179 on line 13). The threshold is not a specific dollar amount but whether the item is consumed in the year or lasts longer.
Footnotes
-
IRS Schedule C (Form 1040) Instructions. See also IRS Publication 17, Your Federal Income Tax. https://www.irs.gov/pub/irs-pdf/p17.pdf ↩
-
IRS Schedule C (Form 1040) Instructions, Line 18. https://www.irs.gov/instructions/i1040sc ↩