Office coffee belongs on Line 18, office expense.
Why line 18
Coffee, tea and bottled water kept at the business premises for you and for people who come in are usually treated as an office consumable and reported on line 18. It changes when the food and drink is furnished to employees, because then it is a meal expense subject to the 50% limit and belongs on line 24b. The amount does not decide this, the purpose does, and a business with no employees and no meal character to the spend is the clean line 18 case.
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 office coffee lands on Line 18 without you sorting it.
Start for freeWhat office coffee is confused with
- Line 24b, deductible meals
- Food and beverages furnished to employees are a meal expense subject to the 50% limit and go on line 24b, while plain coffee and water kept as a break room consumable is commonly reported on line 18.
- not deductible, not deductible
- Groceries and coffee for your own kitchen at home stay personal, and running a business from the house does not make the household coffee deductible.
Examples that belong on line 18
- $38 a month of coffee beans for the studio kitchen
- $22 case of bottled water kept at the shop for walk-in customers
- $120 a quarter for a water cooler delivery at the office
- $15 of tea and filters for the reception area
What does not belong here
- Weekly groceries for the household paid on the business card.
- Taking a client out for coffee, which is a meal on line 24b at the 50% limit.
- Catered lunches for staff, which are meals rather than office consumables.
The limit that applies
Food and beverages provided to employees fall under the 50% limit on meals, so that part of the spend belongs on line 24b rather than line 18.
What to keep
Keep the receipts and note where the drinks are kept and who they are for. If you have employees, keep the staff provision separate from the general break room spend, because the two lines are treated differently.
Other expenses on line 18
| Expense | Line |
|---|---|
| a desk lamp | Schedule C, Line 18 |
| a mixed order of supplies and groceries | Schedule C, Line 18 |
| a paper shredder | Schedule C, Line 18 |
| a password manager subscription | Schedule C, Line 18 |
| a PO box rental | Schedule C, Line 18 |
| a software subscription | Schedule C, Line 18 |
| a virtual mailbox | Schedule C, Line 18 |
| a work app subscription | Schedule C, Line 18 |
| accounting software | Schedule C, Line 18 |
| cloud storage | Schedule C, Line 18 |
| office stationery | Schedule C, Line 18 |
| postage | Schedule C, Line 18 |
Related lookups
Sources
- Instructions for Schedule C (Form 1040)
- Publication 334, Tax Guide for Small Business
- Publication 463, Travel, Gift, and Car Expenses
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 office coffee lands on Line 18 without you sorting it.
Start for free