Is packaging and shipping boxes line 22 or part iii line 38?

Packaging that is part of the product as sold, in a business accounting for inventory, is Part III materials and supplies; plain shipping cartons used to post the order are line 22.

Is packaging and shipping boxes line 22 or line 18?

The postage and carrier charge itself is office expense on line 18, while the box and tape are supplies on line 22.

Where do packaging and boxes go on Schedule C? Line 22

Q: Where do packaging and boxes go on Schedule C?

Packaging and shipping boxes belongs on Line 22, supplies. Plain cartons, mailers, tape and labels used to get an order out of the door are consumed running the business, so they sit on line 22. Packaging that is part of the product as the customer buys it is different: a printed gift box that is part of what a boxed set is, for a business that accounts for inventory, is a cost of that product and belongs in Part III. 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.

Short answer Schedule C, Line 22 Supplies

Packaging and shipping boxes belongs on Line 22, supplies.

Why line 22

Plain cartons, mailers, tape and labels used to get an order out of the door are consumed running the business, so they sit on line 22. Packaging that is part of the product as the customer buys it is different: a printed gift box that is part of what a boxed set is, for a business that accounts for inventory, is a cost of that product and belongs in Part III. 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.

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 packaging and shipping boxes lands on Line 22 without you sorting it.

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What packaging and shipping boxes is confused with

Part III line 38, part iii line 38, materials and supplies: Packaging that is part of the product as sold, in a business accounting for inventory, is Part III materials and supplies; plain shipping cartons used to post the order are line 22.
Line 18, office expense: The postage and carrier charge itself is office expense on line 18, while the box and tape are supplies on line 22.
Line 27a, other expenses: Many sellers itemise outbound shipping and freight in Part V on line 27a, which is a presentation choice for the carrier cost rather than the packaging.

Examples that belong on line 22

$210 for 500 corrugated mailers from Uline
$68 of packing tape and a dispenser
$95 of bubble wrap and void fill
$120 of thermal shipping labels
$45 of poly mailers for a small Etsy run

What does not belong here

Postage and carrier charges, which are line 18 or itemised on line 27a.
Printed retail packaging that is part of the product in an inventory business, which is Part III.
A label printer, which is an asset or a line 18 item under the de minimis safe harbour.
Moving boxes for a house move.

What to keep

Keep the supplier invoices and note whether the item ships with the product as part of it or merely carries it. That distinction decides line 22 against Part III.

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
materials a tradesperson consumes on a job	Schedule C, Line 22
memory cards for a camera	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

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.

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