Google Ads spend belongs on Line 8, advertising.
Why line 8
Line 8 is for the cost of getting a prospect to notice you, and pay-per-click search spend is the purest form of that. The whole invoice is advertising, including the platform fee and any automatic top-up. An agency retainer paid to run the account is also advertising, because the Schedule C instructions tell you to keep contract labor that belongs on another line on that other line.
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 Google Ads spend lands on Line 8 without you sorting it.
Start for freeWhat Google Ads spend is confused with
- Line 10, commissions and fees
- A fixed amount you pay for clicks or impressions is advertising on line 8; a charge calculated as a share of each sale or booking the platform sends you is a commission on line 10.
- Line 11, contract labor
- An agency or freelancer running your own ad account is advertising on line 8; a contractor doing billable work for your clients is contract labor on line 11.
Examples that belong on line 8
- A $420 monthly Google Ads invoice for a plumbing business
- Microsoft Advertising spend on Bing search
- A $600 a month agency retainer to manage the Google Ads account
- A YouTube placement bought through Google Ads
- A one-off $75 test of a new keyword set
What does not belong here
- A Google Workspace subscription, which is office expense on line 18
- Local Services Ads charged per lead, which is a commission on line 10
- Ad spend paid before the business opened, which is a startup cost under section 195
The limit that applies
Advertising paid before the business was open for business is a startup cost under section 195, not a line 8 expense, and is deducted or amortized under the startup rules.
What to keep
Keep the monthly billing PDF from the ad platform, not just the card line, so the amount and the business purpose sit on one document. Download them each year, because platforms limit how far back billing history goes.
Other expenses on line 8
| Expense | Line |
|---|---|
| a domain name registration | Schedule C, Line 8 |
| a Squarespace or Webflow subscription | Schedule C, Line 8 |
| an email marketing tool such as Mailchimp | Schedule C, Line 8 |
| business cards and printed flyers | Schedule C, Line 8 |
| Facebook and Instagram ad spend | Schedule C, Line 8 |
| logo and brand design | Schedule C, Line 8 |
| SEO tools such as Ahrefs or Semrush | Schedule C, Line 8 |
| sponsorship and influencer fees | Schedule C, Line 8 |
| website hosting | Schedule C, Line 8 |
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 Google Ads spend lands on Line 8 without you sorting it.
Start for free