Bookkeeper and accountant fees belongs on Line 17, legal and professional services.
Why line 17
Ongoing bookkeeping, accounting and payroll service fees are professional services bought for the business, so they go on line 17. It makes no difference whether the person is a CPA, an enrolled agent or an unlicensed bookkeeper, or whether you pay monthly or by the hour. A bookkeeper you put on your own payroll is an employee, and then the cost is wages instead.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so bookkeeper and accountant fees lands on Line 17 without you sorting it.
Start for freeWhat bookkeeper and accountant fees is confused with
- Line 26, wages
- If the bookkeeper is your W-2 employee, the cost is wages on line 26; an outside firm or a self-employed bookkeeper is line 17.
- Line 11, contract labor
- Contract labor on line 11 is for contractors producing the work you sell; a bookkeeper serving your back office is a professional service on line 17.
- Line 18, office expense
- Accounting software you operate yourself is an office expense, not a professional service.
Examples that belong on line 17
- $250 a month to an outside bookkeeping firm
- A $900 year-end cleanup and reconciliation engagement
- $65 a month to a payroll service for one employee
- A $1,400 fee for compiled financial statements a lender asked for
What does not belong here
- A bookkeeper on your payroll, which is wages on line 26
- Software subscriptions you run yourself
- The personal portion of a package that also handles your household finances
What to keep
Keep engagement letters and invoices showing the service and the period covered. A Form 1099-NEC you issued to an unincorporated bookkeeper also supports the amount.
Other expenses on line 17
| Expense | Line |
|---|---|
| a registered agent's annual fee | Schedule C, Line 17 |
| a tax prep fee covering the 1040 and Schedule C | Schedule C, Line 17 |
| an appraiser's fee | Schedule C, Line 17 |
| business consultant fees | Schedule C, Line 17 |
| fractional CFO fees | Schedule C, Line 17 |
| legal fees for drafting a client contract | Schedule C, Line 17 |
| legal fees to sue a customer | Schedule C, Line 17 |
| tax preparation fees | Schedule C, Line 17 |
Related lookups
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Sources
This page explains how Schedule C lines work. It is general information, not tax advice for your situation. If an expense is large or the answer turns on a fact about your business, confirm it with your tax preparer.
Looking for a different expense? The full Schedule C line lookup has every line from 8 to 27 with the expenses that belong on each, and Schedule C expense categories walks the whole form in order.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so bookkeeper and accountant fees lands on Line 17 without you sorting it.
Start for free