Is postage line 18 or part iii line 39?

Postage that moves a sold product to the buyer is a cost of the sale and belongs in Part III other costs, while postage that moves paperwork is line 18.

Is postage line 18 or line 22?

Mailing supplies consumed in the work itself, a courier's own labels and waybills, sit closer to line 22 supplies than to office overhead.

Where does postage go on Schedule C? Line 18

Q: Where does postage go on Schedule C?

Postage belongs on Line 18, office expense. Stamps, metered mail and courier charges for your own correspondence are office overhead, so they go on line 18. The deciding test is what the envelope carries. If it carries paperwork, an invoice, a contract, a tax form or a letter, the cost is line 18. If it carries a product a customer bought, the postage is a cost of that sale and is normally reported in Part III as other costs, reaching the return through cost of goods sold.

Short answer Schedule C, Line 18 Office expense

Postage belongs on Line 18, office expense.

Why line 18

Stamps, metered mail and courier charges for your own correspondence are office overhead, so they go on line 18. The deciding test is what the envelope carries. If it carries paperwork, an invoice, a contract, a tax form or a letter, the cost is line 18. If it carries a product a customer bought, the postage is a cost of that sale and is normally reported in Part III as other costs, reaching the return through cost of goods sold.

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 postage lands on Line 18 without you sorting it.

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What postage is confused with

Part III line 39, part iii line 39, other costs: Postage that moves a sold product to the buyer is a cost of the sale and belongs in Part III other costs, while postage that moves paperwork is line 18.
Line 22, supplies: Mailing supplies consumed in the work itself, a courier's own labels and waybills, sit closer to line 22 supplies than to office overhead.

Examples that belong on line 18

$73 of Forever stamps for mailing client invoices and 1099s
$22 USPS Certified Mail fee for sending a signed contract
$31 FedEx charge for overnighting documents to a lawyer
$120 of Pitney Bowes meter refills used for admin mail

What does not belong here

Postage on packages containing goods you sold, which is a cost of the sale.
Personal mail sent from the business roll of stamps.
Freight you pay to get inventory delivered to you, which is added to the cost of that inventory.

What to keep

Keep the post office receipt or the carrier invoice, and note what a roll of stamps was used for. A shipping platform's monthly report separates product shipments from document mail, which is exactly the split line 18 turns on.

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 coffee	Schedule C, Line 18
office stationery	Schedule C, Line 18

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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