A telephone answering service belongs on Line 27a, other expenses.
Why line 27a
You are buying people to answer calls, not telephone service, so this is not a utility. It has no Part II line either, which puts it in Part V and on line 27a. The distinction matters because the phone line itself is line 25 and the two often appear on the same card statement. If instead you engage an individual directly to take your calls, you are buying contract labor and the payment belongs on line 11 with a 1099-NEC if it reaches the reporting threshold.
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 telephone answering service lands on Line 27a without you sorting it.
Start for freeWhat a telephone answering service is confused with
- Line 25, utilities
- The line, the number and the minutes are utilities on line 25, while a company staffing the phone with its own people is a service on line 27a.
- Line 11, contract labor
- A person you engage directly to answer your phone is an independent contractor, so the payment is contract labor on line 11 and may require a 1099-NEC.
Examples that belong on line 27a
- $120 a month virtual receptionist plan for a plumbing business
- $65 a month after-hours answering cover for a dental practice
- $49 monthly minutes bundle plus $38 of overage in a busy month
- $180 a month bilingual call answering for a contractor
- $25 a month appointment-booking add-on on the answering plan
What does not belong here
- The business phone line and mobile plan, which are line 25 utilities.
- A person you hire directly to answer calls, which is line 11 or line 26 depending on their status.
- Voicemail or a call-routing feature on your own phone plan, which stays with the plan on line 25.
- A personal call-screening app on your own phone.
What to keep
Keep the monthly provider invoices and the service agreement showing what is being provided. Where the same provider bills both the line and the answering staff, ask for the split on the invoice.
Other expenses on line 27a
| Expense | Line |
|---|---|
| a background check | Schedule C, Line 27a |
| a branded gift for a client | Schedule C, Line 27a |
| a business coach | Schedule C, Line 27a |
| a conference registration fee | Schedule C, Line 27a |
| a hot-desk day pass | Schedule C, Line 27a |
| a payroll service | Schedule C, Line 27a |
| a professional certification renewal | Schedule C, Line 27a |
| a stock photo license | Schedule C, Line 27a |
| a trade show booth fee | Schedule C, Line 27a |
| a translation service | Schedule C, Line 27a |
| an online course | Schedule C, Line 27a |
| bank fees | Schedule C, Line 27a |
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.
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 telephone answering service lands on Line 27a without you sorting it.
Start for free