Tax Prep (Schedule C)
Overview
Section titled “Overview”The Tax Prep skill analyzes your transactions for tax-deductible expenses, categorizes them by IRS Schedule C line items, flags issues, and generates a comprehensive tax summary.
Trigger it when you need to prepare for tax filing, review deductions, or organize business expenses.
IRS Schedule C Category Mapping
Section titled “IRS Schedule C Category Mapping”| Line | Category | Examples |
|---|---|---|
| 8 | Advertising | Google Ads, Facebook Ads, print advertising |
| 9 | Car and truck expenses | Gas, tolls, parking (business use %) |
| 10 | Commissions and fees | Platform fees, referral payments |
| 11 | Contract labor | Freelancer payments, 1099 contractors |
| 15 | Insurance | Business insurance, E&O, liability |
| 17 | Legal and professional | Attorney, accountant, tax prep fees |
| 18 | Office expense | Office supplies, paper, ink, small equipment |
| 20a | Rent (vehicles/equipment) | Equipment leases, tool rentals |
| 20b | Rent (other business property) | Office rent, coworking space |
| 22 | Supplies | Materials consumed in business |
| 24a | Travel | Flights, hotels, car rentals (business trips) |
| 24b | Meals | Business meals (50% deductible) |
| 25 | Utilities | Internet, phone (business use %), electricity |
| 27a | Other expenses | Software subscriptions, domain names, hosting |
Workflow
Section titled “Workflow”- Scan transactions — Searches broadly for business-related or tax-deductible transactions across software, subscriptions, travel, meals, office supplies, and professional services.
- Categorize by Schedule C — Re-categorizes identified business transactions using the Schedule C line items above.
- Flag issues — Identifies:
- Mixed-use expenses requiring allocation (e.g., cell phone: 60% business)
- Expenses missing documentation or receipts
- Large or unusual deductions that could trigger audit flags
- Meals over $75 (IRS scrutiny threshold)
- Home office deduction — If applicable, calculates using the simplified method ($5/sq ft, max 300 sq ft = $1,500) or actual method.
- Generate tax summary — Totals each Schedule C line item with flagged items and estimated tax savings.
- Export — Exports categorized business expenses for tax filing.
Important Notes
Section titled “Important Notes”- This is a tax organization tool, not tax advice.
- Business meals are 50% deductible (not 100%).
- Vehicle expenses: choose standard mileage OR actual expenses, not both.
- Keep records for at least 3 years from filing date.