Materials a tradesperson consumes on a job belongs on Line 22, supplies.
Why line 22
Line 22 is for supplies you consume doing the work, and it is explicitly the supplies not included in Part III. A service trade that buys caulk, fasteners, abrasives, tape and adhesive, uses them up on jobs and keeps no stock to sell deducts them here in the year bought. The deciding question is whether the business produces or resells goods and accounts for inventory. If it does, the cost of anything that becomes part of a product sold belongs in Part III and reaches the return through cost of goods sold, not line 22. A plumber who stocks fixtures and bills them on to the customer is in the second group for those fixtures, even though the sealant and solder stay on line 22.
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 materials a tradesperson consumes on a job lands on Line 22 without you sorting it.
Start for freeWhat materials a tradesperson consumes on a job is confused with
- Part III line 38, part iii line 38, materials and supplies
- If you account for inventory and the material becomes part of what the customer buys, its cost is Part III materials and supplies rather than line 22.
- Line 18, office expense
- Office consumables such as printer ink, paper and postage are line 18, while materials consumed on the work you bill for are line 22.
- Line 13, depreciation and section 179 expense deduction
- A durable tool that lasts more than a year and costs more than the de minimis amount is a capital asset on line 13, not a supply.
Examples that belong on line 22
- $180 of screws, nails and construction adhesive for a deck job
- $95 of sandpaper, blades and abrasive discs in a month
- $240 of caulk, tape and plastic sheeting for a painting job
- $70 of solder, flux and pipe dope on a plumbing call
- $310 of mixed consumables across four jobs in March
What does not belong here
- Fixtures and equipment you buy in and bill on while keeping stock, which belong in Part III.
- Tools that last more than a year and cost more than the de minimis amount.
- Materials the customer bought directly and you only fitted.
- Materials used on work at your own home.
The limit that applies
Incidental supplies can be deducted when bought rather than when used, provided you keep no inventory of them and the timing does not distort income.
What to keep
Keep the supplier receipts and, where you can, a note of the job each run of materials went to. Trade account statements that itemise by purchase order are stronger than a card line at a builders merchant.
Other expenses on line 22
| Expense | Line |
|---|---|
| a dog groomer's shampoo | Schedule C, Line 22 |
| branded uniforms and workwear | Schedule C, Line 22 |
| cleaning chemicals and cloths | Schedule C, Line 22 |
| clinic and lab disposables | Schedule C, Line 22 |
| memory cards for a camera | Schedule C, Line 22 |
| packaging and shipping boxes | Schedule C, Line 22 |
| PPE, work gloves and safety boots | Schedule C, Line 22 |
| salon color and product used on clients | Schedule C, Line 22 |
| small tools under the de minimis threshold | Schedule C, Line 22 |
Related lookups
- Where do print on demand supplies go?
- Where does printer ink go on Schedule C?
- Where does capex go on Schedule C?
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 materials a tradesperson consumes on a job lands on Line 22 without you sorting it.
Start for free