A freelance editor or bookkeeper belongs on Line 11, contract labor.
Why line 11
An editor, proofreader or production contractor whose output is part of what you deliver is contract labor on line 11. Where the work is on your own books or your own tax return, the better line is 17, legal and professional services, which the instructions name for accounting and bookkeeping fees. So a bookkeeper you hire to keep your books is line 17, while a bookkeeper you subcontract to serve your own clients is line 11. Same person, same invoice format, two different lines depending on whose work it is.
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 a freelance editor or bookkeeper lands on Line 11 without you sorting it.
Start for freeWhat a freelance editor or bookkeeper is confused with
- Line 17, legal and professional services
- If the professional's work is on your own accounts, taxes or legal affairs, it is line 17; if their output is part of what you sell, it is line 11.
- Line 26, wages
- An in-house editor on your schedule with your tools is an employee, so the pay is wages on line 26.
- Part III line 37, part iii line 37, cost of labor
- If the edited work is inventory you sell as a product, the labour is Part III line 37 cost of labor.
Examples that belong on line 11
- 750 dollars to a copy editor on a client's annual report
- A 40 dollar an hour proofreader on a book you are producing for a client
- 1,100 dollars to a subcontracted bookkeeper who serviced two of your clients
- 300 dollars to a fact checker on a commissioned article
- A 200 dollar invoice for transcript cleanup on a client's podcast
What does not belong here
- Your own bookkeeper or accountant working on your books, which is line 17
- Tax return preparation for your business, which is line 17
- Editing software subscriptions, which are line 18
- An editor you put on payroll, which is line 26
What to keep
Keep invoices that say what was edited and for whom, the payment record and a W-9. The for-whom detail is what supports line 11 over line 17.
Other expenses on line 11
| Expense | Line |
|---|---|
| a freelance developer or designer | Schedule C, Line 11 |
| a freelance photographer | Schedule C, Line 11 |
| a staffing agency invoice | Schedule C, Line 11 |
| a subcontractor on a client project | Schedule C, Line 11 |
| a virtual assistant | Schedule C, Line 11 |
| a website bug fix by a contractor | Schedule C, Line 11 |
Related lookups
- Where do tax preparation fees go on Sch C?
- Can I pay my child and deduct it on Schedule C?
- Where do wages for production workers go?
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 a freelance editor or bookkeeper lands on Line 11 without you sorting it.
Start for free