> ## Documentation Index
> Fetch the complete documentation index at: https://help.kneadapp.co/llms.txt
> Use this file to discover all available pages before exploring further.

# Expense Categories and Schedule C Mapping

> Map each expense category to its IRS Schedule C line for accurate tax reports.

## Overview

Knead organizes your spending into categories, and each category is mapped to a line on the IRS Schedule C — the form sole proprietors use to report business income and expenses. Getting this mapping right is what makes your Schedule C worksheet accurate at tax time, so it's worth a quick review.

## Where to Find Category Mappings

1. Tap **Settings**.
2. Tap **Categories** to open `/settings/categories`.

The page is titled "Expense Categories" with the description "Map each category to its IRS Schedule C line. The Schedule C worksheet uses this mapping."

<img src="https://mintcdn.com/kneadapp/GEXsIwkkXZhBlwIA/images/expense-categories.png?fit=max&auto=format&n=GEXsIwkkXZhBlwIA&q=85&s=976e9ee774e2033396f90c45d906e084" alt="The Expense Categories page mapping each category to its IRS Schedule C line" width="2880" height="1800" data-path="images/expense-categories.png" />

## How Each Category Maps

In the **Category mappings** card, every row has:

* The **category name**
* A **COGS** checkbox
* A **Line N** dropdown for the Schedule C line
* A **Save** button (disabled until you change something; you'll see a "Updated {name}" toast when it saves)

Available Schedule C lines in the dropdown are: 8, 9, 10, 11, 15, 17, 18, 21, 22, 23, 24a, 24b, 25, 27a, and 36.

## COGS vs. Operating Expenses

The **COGS** checkbox decides where a category lands on your Schedule C:

| COGS checkbox | Schedule C section            | What it means                                                |
| ------------- | ----------------------------- | ------------------------------------------------------------ |
| Checked       | Part III — Cost of Goods Sold | Direct costs of making your product (ingredients, packaging) |
| Unchecked     | Part II — Operating Expenses  | Running the business (marketing, software, insurance)        |

## Default Categories

The first time you record an expense, Knead seeds a set of default categories already mapped to sensible lines. For example:

| Category                 | Schedule C line | COGS? |
| ------------------------ | --------------- | ----- |
| Ingredients              | Line 36         | Yes   |
| Packaging Supplies       | Line 22         | No    |
| Utilities                | Line 25         | No    |
| Marketing & Advertising  | Line 8          | No    |
| Payment Processing Fees  | Line 10         | No    |
| Insurance                | Line 15         | No    |
| Contract Labor           | Line 11         | No    |
| Travel                   | Line 24a        | No    |
| Meals                    | Line 24b        | No    |
| Software & Subscriptions | Line 27a        | No    |

You can adjust any of these to match how your tax preparer wants things organized.

<Note>Good to know: Correct mapping is what makes the Schedule C worksheet add up correctly. If a category is mapped to the wrong line, those expenses land in the wrong place on your worksheet.</Note>

At the bottom of the page, the link "View the Schedule C worksheet →" takes you straight to your tax-time rollup.

## Related Articles

* [The Schedule C Worksheet](/bookkeeping-and-taxes/schedule-c-worksheet)
* [Tracking Business Expenses](/bookkeeping-and-taxes/tracking-business-expenses)
* [Recipe Costing with The Pantry](/products-and-pricing/recipe-costing-with-the-pantry)

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*Still need help? [Contact us](mailto:hello@kneadapp.co)*