Where does business insurance go on Schedule C?
Line 15 — Insurance (other than health)
Premiums for business insurance go on Schedule C Line 15, 'Insurance (other than health)'. That includes general and professional liability, tools and equipment cover, cargo and commercial vehicle policies, and business interruption cover. Self-employed health insurance is not deducted here: it is generally claimed as an adjustment to income on your Form 1040 instead, which is often more valuable. Vehicle insurance is part of actual car expenses on Line 9 if you use the actual-expense method, and is already inside the standard mileage rate if you do not.
Examples
- General liability for a cleaning or trades business.
- Errors and omissions cover for agents and consultants.
- Equipment insurance on cameras or tools.
Watch out for
- Do not deduct health premiums on Line 15.
- Prepaid multi-year premiums may need to be spread across the years covered.
- Personal auto or homeowner policies are not deductible except through a valid business-use allocation.
Stop guessing the category
DocuSpending reads each receipt and assigns the Schedule C category for you, then totals the year on demand.
General information, not tax advice. Amounts, limits, and percentages change between tax years — check the current IRS Schedule C instructions or ask a tax professional about your situation.
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