PatraX — IRS Schedule C Reference

IRS Schedule C — Line Reference

Maps every Schedule C line to the PatraX deduction category and shows how each value is populated.
Use this to verify what needs a transaction, what needs a manual entry, and what the app calculates automatically.

Auto — pulled from Plaid bank transactions (user-categorized or Plaid-matched)

Manual — user must type a dollar amount (no transaction backing)

Calculated — app computes from logged data (miles, sq ft, etc.)

Hybrid — auto transactions + manual input for override/adjustment

N/A — not applicable to gig / self-employed workers

What "truly manual" means: Any line marked Manual or Hybrid requires the user to enter data that PatraX cannot obtain from bank transactions — typically a year-end statement (Form 1098, lender letter), a government bill (DMV, county tax), or a retirement account contribution that was a transfer rather than a card charge.

Part I — Gross Income

Line	Description	PatraX Category	Method	Notes
1	Gross receipts or sales	is_gig_income	Calculated	Sum of all transactions marked `is_gig_income = true`. PatraX auto-flags deposits from known platforms; user confirms or toggles manually.
2	Returns and allowances	—	N/A	PatraX does not track platform chargebacks or refunds. If material, user must subtract manually on the tax return.
4	Cost of goods sold (Part III)	cogsmerch_cogs	Auto	Transactions categorized as cost of goods or merch cost of goods. Resellers must still verify beginning/ending inventory manually (Part III, lines 33–42).
6	Other income	—	N/A	Not tracked. Examples: loan forgiveness, insurance reimbursement. Enter manually on tax return.

Part II — Expenses

Line	Description	PatraX Category	Method	Notes
8	Advertising	marketing	Auto	Promoted posts, paid ads, sponsored content charges from bank feed.
9	Car and truck expenses	mileage gas car_insurance car_maint vehicle_loan_int vehicle_reg	Hybrid	Standard mileage: App calculates from the Miles tab (miles × IRS rate). Gas, maintenance, and insurance are excluded when using standard rate. Actual expenses: All vehicle-category transactions sum automatically. User must also enter `vehicle_loan_int` and `vehicle_reg` manually if they don't show as card charges (DMV bill, lender statement).
10	Commissions and fees	platform_fees	Auto	Upwork service %, PayPal/Stripe processing fees charged to card.
11	Contract labor	contractor_labor	Auto	Payments to editors, assistants, freelancers. Note: contractors paid ≥$600/year require a 1099-NEC — PatraX does not generate these.
12	Depletion	—	N/A	Applies to natural resource extraction. Not relevant for gig workers.
13	Depreciation (Form 4562)	depreciation	Hybrid	PatraX captures the purchase transaction (camera, laptop, equipment). However, Section 179 / bonus depreciation elections and multi-year schedules require Form 4562, which the app does not generate. User or tax preparer must complete Form 4562 separately.
14	Employee benefit programs	—	N/A	Applies only if you have W-2 employees. Gig workers typically have none.
15	Insurance (other than health)	car_insurance liability_ins str_insurance	Auto	Rideshare/delivery policy, professional liability, and short-term rental insurance transactions from bank feed. Health insurance goes on Schedule 1 (Form 1040), not here.
16a	Mortgage interest (Form 1098)	mortgage_int	Manual	Truly manual. Rental hosts (Airbnb/VRBO) deduct proportional mortgage interest. Amount comes from lender's year-end Form 1098, not a card transaction. User must enter the number from their Form 1098, prorated by rental days ÷ 365.
16b	Other business interest	vehicle_loan_int biz_loan_int	Manual	Truly manual. The interest portion of a loan payment (not the principal) comes from the lender's year-end statement — the bank transaction shows the full payment, not the interest split. User enters from their lender's annual interest statement.
17	Legal and professional services	professional_svcs	Auto	Accountant, tax prep, and legal fees paid by card.
18	Office expense	software supplies	Auto	Editing apps, SaaS tools, office materials from bank feed.
19	Pension / profit-sharing plans	sep_ira	Manual	Truly manual. SEP-IRA and Solo 401k contributions are transfers to a brokerage — they don't show as deductible charges in a bank feed. User must enter the contribution amount. Cap: 20% of net SE profit or $69,000 (2024).
20a	Vehicle / machinery rent or lease	—	N/A	Not tracked. Would apply if worker leases a commercial vehicle or equipment.
20b	Other business property rent	storage_rent	Auto	Storage unit monthly charge from bank feed.
21	Repairs and maintenance	car_maint home_maint	Auto	Oil changes, tire replacements, property repairs from bank feed. Cash payments for repairs are not captured — user must add as a manual transaction.
22	Supplies	supplies pet_supplies hot_bags insulated_bags tools cleaning welcome_amenities linens safety_gear	Auto	All consumable and small-equipment categories. Multiple PatraX categories roll up here on the actual tax return — tax preparer must aggregate.
23	Taxes and licenses	vehicle_reg biz_license	Hybrid	DMV registration and business license fees often come as a bill or in-person payment rather than a card charge. If the fee appeared as a bank transaction, it's auto. If paid by check, cash, or mail, user must add a manual transaction. Partially manual in practice.
24a	Travel	travel	Auto	Flights, hotels, and Airbnb charges for business travel from bank feed. Must be primarily for business to be 100% deductible.
24b	Meals (50% deductible)	meals	Auto	PatraX applies the 50% deductibility automatically (TCJA 2018). Entertainment (concerts, sports) is 0% — do not categorize those here.
25	Utilities	phone internet electricity rental_utilities	Auto	Phone at 70%, internet at 50% (or home-office %) applied automatically. Electricity deducted at studio % (home office sq ft ÷ total). Rental utilities prorated by rental days. All pulled from bank feed.
26	Wages	—	N/A	Applies only if worker has W-2 employees and runs payroll. Most gig workers have none. Payments to contractors go on Line 11, not here.
27a	Other expenses (Part V)	camera_gear streaming_gear props_wardrobe education music_license stock_assets conferences ext_storage seller_subs po_box inventory_sw return_shipping website_hosting bank_fees lead_gen background_check roadside_assist dash_cam uniform parking_tolls shipping listing_photo smart_home property_mgmt_sw startup_costs bad_debts	Hybrid	Most are Auto (transaction-based from bank feed). Truly manual within this group: `startup_costs` — one-time entry from launch expense records; $5,000 deductible Year 1 (Sec. 195), rest amortized. `bad_debts` — unpaid client invoices; only deductible on accrual basis, not cash basis. Rare for gig workers. `dash_cam`, `camera_gear`, `ext_storage` — large purchases may qualify for Section 179 full expensing; Form 4562 still needed for the election.
30	Home office deduction	home_office	Hybrid	Simplified method: User enters office sq ft in Settings → Tax. App calculates $5 × sq ft (max 300 sq ft = $1,500/yr). No transaction needed. Actual method: User enters office sq ft + total home sq ft. App applies the % to rent/mortgage + utilities transactions from the bank feed. Both paths require the sq ft input — truly manual in that sense.

Part III — Cost of Goods Sold (Resellers / FBA)

Line	Description	PatraX Category	Method	Notes
33–35	Inventory method + beginning inventory	—	Manual	Truly manual. IRS asks for the accounting method (cost, lower of cost or market) and beginning-of-year inventory value. PatraX does not track inventory levels — user must enter from their own records.
36	Purchases less personal use	cogs merch_cogs	Auto	Purchase-of-resale-items transactions from bank feed. User must subtract the cost of any items withdrawn for personal use.
41–42	Ending inventory + COGS	—	Manual	Truly manual. End-of-year inventory count must be done by the user. PatraX cannot know what sold vs. what remains in stock.

Part IV — Vehicle Information (required if claiming car expenses)

Line	Description	PatraX Category	Method	Notes
43	Date vehicle placed in service	—	Manual	Truly manual. Not tracked. User enters on tax return.
44a	Total miles driven during year	mileage	Calculated	Sum of all miles logged in the Miles tab. User logs trips; app totals them.
44b	Business miles	mileage	Calculated	All miles logged in PatraX are assumed to be business miles. User responsible for not logging personal trips.
44c	Commuting miles	—	Manual	Truly manual. Commuting miles are not deductible. PatraX does not distinguish commute vs. business driving. User must exclude commute miles from their log.
45–47	Vehicle available for personal use, another vehicle available, evidence	—	Manual	Truly manual. IRS yes/no questions answered on the tax return. PatraX mileage log serves as the written evidence (Line 47b).

Above-the-Line Deductions — Form 1040 Schedule 1 (not Schedule C)

Form	Description	PatraX Category	Method	Notes
Sch 1 L17	Self-employed health insurance deduction	health_ins	Manual	Truly manual. Premiums paid for self + family. Goes on Schedule 1 Line 17, not Schedule C. Often an annual or monthly charge; may appear as a bank transaction but user must confirm it's a health premium, not a gym or dental plan.
Sch 1 L16	Self-employed SEP-IRA / Solo 401k	sep_ira	Manual	Truly manual. Same as Line 19 note above — contribution amount entered by user. Goes on Schedule 1 Line 16.
Sch 1 L13	HSA deduction	hsa	Manual	Truly manual. HSA contributions not made through payroll. Limits: $4,150 single / $8,300 family (2024). PatraX tracks the category but the user enters the total contribution; it goes on Schedule 1 Line 13 via Form 8889.

Summary — Truly Manual Lines

PatraX Category	Schedule C Line	Why Manual	Source Document
mortgage_int	16a	Lender sends a Form 1098 — bank shows full payment, not interest portion	Form 1098 (from lender)
vehicle_loan_int	16b	Same — only the interest portion is deductible, not the principal	Year-end interest statement (from lender)
biz_loan_int	16b	Same interest-only rule	Year-end interest statement (from lender)
sep_ira	19 / Sch 1 L16	Transfer to brokerage — not a deductible purchase; user enters contribution amount	Brokerage account statement or own records
health_ins	Sch 1 L17	Premium amount must be confirmed as health insurance (not gym, dental plan, etc.)	Insurance carrier statement
hsa	Sch 1 L13	Contributions often direct transfer; requires Form 8889 — not on Schedule C	HSA provider Form 5498-SA
startup_costs	27a / Part V	One-time Sec. 195 election; year-1 cap is $5,000, remainder amortized 180 months	Own launch expense records
bad_debts	27a / Part V	Only deductible on accrual basis; rare for gig workers on cash basis	Client invoices + proof of uncollectibility
home_office (sq ft)	30	Both simplified and actual methods require the user to input office sq ft and total home sq ft	Lease, floor plan, or measured area
Inventory (Part III)	33–42	Beginning and ending inventory counts not tracked by app	Own inventory records / Amazon Seller Central
Vehicle dates & personal use (Part IV)	43–47	IRS yes/no attestation questions answered on the return	Own vehicle records + PatraX mileage log as evidence