expense-categories
Money Pro Expense Categories — IRS Schedule C Guide
Money Pro uses IRS Schedule C expense categories — the same ones on your federal business tax return. Every categorized transaction feeds directly into your Schedule C report. The main categories are Advertising, Business Meals, Car Expenses, Office Expense, Professional Fees, Travel, Utilities, and Other Business Expense. You can add custom subcategories but cannot change the parent IRS categories.
IRS Schedule C Categories in Money Pro
| Category | What to Include |
|---|---|
| Advertising | Online ads, print ads, promotional materials, marketing agency fees, business cards |
| Car and Truck Expenses | Actual vehicle costs — gas, insurance, repairs, depreciation — based on business-use percentage. Use this OR mileage, not both. |
| Commissions and Fees | Payments to independent contractors and freelancers (1099 workers) |
| Contract Labor | Payments to subcontractors for work on specific projects |
| Depletion | Natural resource businesses (oil, timber, mining) — rarely used by most small businesses |
| Depreciation | Cost recovery for long-term business assets (equipment, vehicles, computers) |
| Employee Benefit Programs | Health insurance and other benefits paid for employees (not yourself) |
| Insurance | Business liability insurance, professional liability (E&O), property insurance for business assets |
| Interest | Interest on loans used for business purposes |
| Legal and Professional Fees | Attorney fees, accountant fees, CPA fees, consultant fees directly related to your business |
| Meals | Business meals with clients or for business purposes — tracked at 100%, 50% deductible at filing |
| Office Expense | Office supplies, postage, printer ink, stamps, small tools and equipment |
| Pension and Profit-Sharing | Retirement plan contributions for employees |
| Rent or Lease | Office space rent, equipment leases, storage unit rent for business use |
| Repairs and Maintenance | Business equipment repairs, office maintenance costs |
| Salaries and Wages | Wages paid to W-2 employees (not yourself as an LLC owner) |
| Software and Subscriptions | SaaS tools, software licenses, cloud services, business app subscriptions |
| Taxes and Licenses | Business licenses, state taxes, local taxes, business property taxes |
| Travel | Business travel — airfare, hotels, ground transportation (not commuting) |
| Utilities | Business phone, internet, utilities for your office or business location |
| Other Business Expense | Legitimate business expenses that don't fit another category |
Special Categories
Owner's Draw (Not a Business Expense)
When you take money from your LLC for personal use, categorize it as Owner's Draw — this is NOT a business expense and should never appear in your Schedule C categories. See How to Track Expenses for details on the owner's draw distinction.
Personal
Transactions that are personal and should be excluded from all business reports. Use this for personal purchases that accidentally went through your business account.
Custom Subcategories
You can create subcategories under any main IRS category. The parent categories map directly to Schedule C lines and cannot be changed. To add a subcategory:
1. Gear icon → Business Categories → + Add
2. Enter the subcategory name
3. Select the parent IRS category it belongs under
4. Save
Example: Add "YouTube Ads" and "Google Ads" as subcategories under Advertising.
Important Tax Notes
- Business meals: Always record the full amount. The 50% IRS limitation is applied at tax filing time — not in Money Pro.
- Car and Truck Expenses vs. Mileage: You can only use one method per vehicle per tax year. Most small business owners find the standard mileage rate simpler. See your Tax Profile settings to toggle between methods.
- Home office: There isn't a dedicated Schedule C home office category in Money Pro — use Utilities and Rent or Lease for the proportional business portion, and your accountant applies the home office deduction at filing.
Frequently Asked Questions
What if I can't find the right category for an expense?
Use Other Business Expense. Describe it clearly in the notes field. Your accountant can move it to the correct category when preparing your return. Don't guess at an incorrect category — Other Business Expense is always better than miscategorizing.
Can I create a new parent category?
No — parent categories are fixed to IRS Schedule C lines and cannot be added or modified. You can only add subcategories under existing parents.
What's the difference between Office Expense and Software & Subscriptions?
Office Expense covers physical supplies and small one-time purchases. Software & Subscriptions covers recurring digital tools and licenses. When in doubt, either category is acceptable — your accountant knows how to handle either on Schedule C.