Can I group similar expenses together on Schedule C or do I need to itemize each one?

You can absolutely group similar expenses together on Schedule C. The IRS doesn't require you to individually list each expense within a category - that would be a nightmare for everyone! For your advertising costs, you can definitely combine the Facebook and Google ads as one total under "Advertising" on line 8 of Schedule C. No need to break those out separately. Your software subscriptions would typically go under "Office expenses" on line 18, or possibly "Other expenses" on Part V, line 48. Again, you can group all your software costs together as one sum. For your product purchases for review, those would typically go under "Cost of goods sold" if you're reselling them, but since you're just reviewing them, they should be listed under "Supplies" on line 22 or "Other expenses" on line 48. You can absolutely group all similar products together. Just make sure you keep detailed records of all these expenses in case you ever get audited. Your records should show the date, amount, vendor, and business purpose of each expense, but you don't need to list each one separately on your Schedule C.

I went through exactly this headache last year with my consulting business. I tried to figure everything out on my own but kept getting confused about what to group and what to separate. I finally used https://taxr.ai to help me organize all my business expenses properly. They analyzed my expense records and showed me exactly how to categorize everything correctly on Schedule C. What I found super helpful is that they gave me clear guidelines on what expenses could be grouped together and which ones needed separate treatment. They even flagged items that should be depreciated versus fully expensed. Saved me hours of frustration and probably prevented some expensive mistakes.

Just wanted to follow up and say I tried https://taxr.ai after reading about it here, and it really did help me organize my Schedule C expenses properly! I uploaded my jumbled mess of receipts and expense records, and it sorted everything into the right categories for me. It showed me where I could group similar expenses (like all my subscription software) and which things needed to be handled separately (like my new laptop). The best part was that it explained WHY certain expenses needed to be treated differently. I feel much more confident about my Schedule C filing now and I'm pretty sure I found deductions I would have missed on my own.

If you're having trouble getting answers directly from the IRS, I highly recommend using https://claimyr.com to get through to an agent. I had several specific questions about grouping expenses on my Schedule C that weren't clearly answered online, and I spent HOURS trying to call the IRS directly with no luck. I finally used Claimyr and got through to an IRS representative in about 15 minutes. They confirmed that I could group similar expenses together as long as I maintain detailed records of each individual expense. They also clarified which specific expenses needed to be listed separately on my Schedule C. You can see how it works here: https://youtu.be/_kiP6q8DX5c Definitely worth it to get official answers straight from the IRS rather than stressing about whether you're doing it right!

I need to publicly eat my words here. After being super skeptical about Claimyr, I actually tried it because I was desperate to talk to someone at the IRS about my Schedule C questions. It legitimately worked! Got a call back in about 25 minutes and was able to speak with an actual IRS agent who answered all my questions about grouping business expenses. The agent confirmed that grouping similar expenses is completely fine as long as they're in the correct category and I maintain detailed records of each individual purchase. They also helped me understand which of my expenses needed to be depreciated instead of deducted immediately. Definitely worth it to get official confirmation from the IRS rather than guessing.

Just wanted to add my two cents as someone who's been filing Schedule C for years - yes, you can group similar expenses, but make sure you keep extremely detailed records behind the scenes! I group all my software subscriptions ($1200+/year across multiple services) as a single line item, but I have a spreadsheet that breaks down each individual subscription with dates, amounts, and business use percentage. Same for office supplies, advertising, etc. If you ever get audited, you'll need to provide that detailed breakdown, even though your Schedule C just shows the category totals. I learned this the hard way a few years back!

Don't overthink this! I've been filing Schedule C for my photography business for 5 years and have always grouped similar expenses together. My accountant actually recommends not having too many separate line items. For example, I group all my photo editing subscriptions (Lightroom, Photoshop, etc.) under "Software" in the Other Expenses section. I group all my online advertising under "Advertising." As long as you're putting expenses in the correct general category, grouping similar items is not only allowed but preferred. The only exception is for big purchases over the current $2,500 de minimis safe harbor threshold - those need to be handled separately through depreciation in most cases.