U.S. · Tax forms
Schedule C line 22, supplies.
What counts as consumed, what must be depreciated, and why it says “not included in Part III.”
Line 22 (“Supplies (not included in Part III)”) is for materials and supplies you actually consumed and used in the business during the year. You can also deduct books, professional instruments and equipment you normally use within a year; if their usefulness extends well beyond a year, you generally depreciate them instead.
Look up a supply situation
Result
Supplies rules from the 2025 instructions
| Item | Meaning | What the IRS says |
|---|---|---|
| Consumed in the year | Deductible on line 22 | You can deduct the cost of materials and supplies only to the extent you actually consumed and used them in the business during the tax year (unless deducted in a prior year) |
| Incidentals, no inventory kept | Deduct what you purchased | If you had incidental materials and supplies on hand and kept no inventories or records of use, you can deduct the cost of those you actually purchased during the year, provided that method clearly reflects income |
| Books, instruments, equipment used within a year | Deductible on line 22 | The instructions allow these if you normally use them within a year |
| Usefulness well beyond a year | Depreciate (line 13) | Cost is generally recovered through depreciation |
| Supplies in cost of goods sold | Part III, line 38 | Materials and supplies in Part III are not repeated on line 22 |
| Office supplies and postage | Line 18 | The instructions assign these to office expense |
Consumed, not just bought
The default rule is consumption: the deduction for materials and supplies follows what you used in the year, unless you already deducted them in a prior year. Stockpiling at year end does not by itself make the whole purchase deductible. The exception in the instructions is incidental materials with no inventories or records of use, where the purchases for the year can be deducted if that method clearly reflects income.
Line 22 or Part III
The line label says “not included in Part III.” If you sell goods and value an inventory, materials that go into the product are part of cost of goods sold (line 38, flowing to line 42 and line 4), so they should not also be on line 22.
Line 22 or line 18
The instructions put office supplies and postage on line 18. Use line 22 for other materials and supplies the business consumes.
Worked example
Jo runs a cleaning service and kept no inventory of cleaning products. She bought $640 of cleaning supplies in 2025 and a $95 reference manual she will use within the year. Line 22 shows $735. A $3,000 commercial vacuum will last many years, so its cost is generally recovered through depreciation on line 13 instead. Names and figures are made up.
More line pages in this set
Related lines: Schedule C Line 18, Schedule C Line 13, Schedule C Line 23.
Sources
- Instructions for Schedule C (Form 1040) (2025): the line-by-line instructions on this page. Page last reviewed or updated April 30, 2026. Read November 2, 2026.
- Schedule C (Form 1040): the printed line wording and arithmetic on the form. Read November 2, 2026.
Tax year 2025 instructions (page last reviewed or updated April 30, 2026). The line labels were read from the Schedule C (Form 1040) PDF the IRS had posted on the date read, which is marked 2026; line numbers can shift between years, so check them against the form for your tax year. Names in worked examples are made up.
Frequently asked questions
What goes on Schedule C line 22?
The cost of materials and supplies you actually consumed and used in the business during the year that are not part of cost of goods sold, plus books, professional instruments and equipment you normally use within a year.
What if I did not track what I used?
If the supplies were incidental and you kept no inventories or records of use, you can deduct what you purchased during the year, provided that method clearly reflects income.
Does equipment go on line 22?
Only if you normally use it within a year. If its usefulness extends substantially beyond a year, you must generally depreciate it.
What does “not included in Part III” mean?
Materials and supplies already counted in cost of goods sold on Part III are not deducted again on line 22.
Is postage a supply?
The instructions put office supplies and postage on line 18, office expense.
Not tax advice
This page summarizes IRS instructions, mostly written for the people who prepare the form, and is not tax, legal or financial advice. A CPA or an enrolled agent can confirm what a line means for your return. Everything runs in your browser; nothing you enter is sent anywhere.