Source: https://billingmart.com/tax-categories # Know your categories before tax time BillingMart suggests the tax category of every bill, expense and invoice, and you confirm each one. When you do your taxes, the answer is already there. [How it works](https://billingmart.com/tax-categories#how) [BillingMart Agent](https://billingmart.com/agent) A suggestion, not tax advice. Check your categories with your accountant. How it works ## Free where it can be, AI where it has to be, yours to confirm A suggestion never changes a record on its own. 1. 1 ### It looks at what it already knows A default you set for a vendor or a customer, the category you chose last time for the same payee, and — on an invoice — whether every line is charged by time or by the unit. These cost nothing. 2. 2 ### AI only when it has to When none of that decides, the record’s payee, memo and amount are read by AI and it proposes one category with a short reason. That uses AI credits, like every other AI feature. 3. 3 ### You confirm A suggestion is a draft beside the record. Nothing is categorised until you accept it or pick another — one at a time, or review them as a list. An assistant you connect can suggest and ask; you approve. 4. 4 ### Ready at tax time A report totals each category per period and currency: money out by expense category, money in by income category without the sales tax you collected, and what is still uncategorised. The categories ## The lines of IRS Schedule C Edition us-sch-c-2026, for a US sole proprietor or single-member LLC. Each category keeps its form line, so the totals map straight onto the form. ### Money out - Advertising Line 8 Ads, signs, business cards, website promotion and marketing costs. - Car and truck expenses Line 9 Fuel, parking, tolls and upkeep of a vehicle used for the business. - Commissions and fees Line 10 Sales commissions, platform and payment-processing fees. - Contract labor Line 11 Payments to independent contractors and freelancers who are not employees. - Depletion Line 12 Depletion of natural resources such as timber, oil or minerals. - Depreciation and section 179 Line 13 Writing off the cost of equipment or property over time, or section 179 expensing. - Employee benefit programs Line 14 Health, accident and other benefits paid for employees (not for the owner). - Insurance (other than health) Line 15 Business liability, property, vehicle and similar insurance premiums. - Interest: mortgage Line 16a Mortgage interest on business property. - Interest: other Line 16b Interest on business loans, credit cards and lines of credit. - Legal and professional services Line 17 Lawyers, accountants, bookkeepers, consultants and tax preparation. - Office expense Line 18 Postage, printing, software subscriptions and everyday office items. - Pension and profit-sharing plans Line 19 Contributions to retirement plans for employees. - Rent or lease: vehicles, machinery, equipment Line 20a Renting or leasing a vehicle, machine or equipment for the business. - Rent or lease: other business property Line 20b Renting an office, shop, storage unit or other business space. - Repairs and maintenance Line 21 Fixing or maintaining business equipment, tools and premises. - Supplies Line 22 Materials and supplies used up in the work and not held as inventory. - Taxes and licenses Line 23 Business licenses, permits, registration fees and payroll or property taxes. - Travel Line 24a Flights, hotels, rental cars and other travel away from home for the business. - Meals Line 24b Business meals (only part is deductible; the form applies the limit). - Utilities Line 25 Electricity, gas, water, internet and phone for the business. - Wages Line 26 Pay to employees (not the owner and not contractors). - Business use of home Line 30 The business share of home costs for a space used regularly for work. - Other expenses Line 27a A business cost that fits none of the other lines. - Cost of goods sold: purchases Part III Goods bought to resell, and materials that become part of what is sold. - Equipment or asset purchase A larger purchase kept and used for years (a vehicle, machine or computer); it is usually written off through depreciation. - Personal or not deductible A personal cost, or one that is not a business expense. ### Money in - Sales of goods Line 1 Gross receipts from selling products. - Services Line 1 Gross receipts for work done: labor, time, consulting, repairs, projects. - Other income Line 6 Business income that is neither sales of goods nor services, such as a refund of a business cost. - Interest income Line 6 Interest earned on business accounts. - Not income Money that is not business income: sales tax collected for the state, a returned deposit, a loan. For developers and assistants ## In the API and in MCP Read the categories, suggest for up to 25 records at a time, and read each record’s category and waiting suggestion. An assistant creates drafts only; confirming asks a person, or runs at once only under a rule the owner set. Also see ## BillingMart Agent Ask for your categories in plain words; the Agent suggests and asks you to confirm. [See the Agent →](https://billingmart.com/agent) ## Make tax time shorter A suggestion, not tax advice. Check your categories with your accountant. Suggestions on every plan; AI credits are used only when the free answers cannot decide. [Start free](https://app.billingmart.com/sign-up) [Compare the plans](https://billingmart.com/pricing#compare) --- This is the Markdown copy of https://billingmart.com/tax-categories. Live plans, prices and limits are published as JSON at https://billingmart.com/plans.json and https://billingmart.com/agent-info.json.