To map your categories, go to Reports, tap the settings gear, then Schedule C Categories. Each expense category is assigned to a line on IRS Schedule C (Form 1040). Built-in categories come pre-mapped, and you can override any of them.
Why This Matters
When you file taxes as a sole proprietor, your business expenses don't get lumped together -- the IRS wants them sorted onto specific numbered lines on Schedule C. This screen does that sorting for you, so your year-end tax report is already organized the way your accountant (or tax software) expects.
Step-by-Step
Go to the Reports tab
Tap the settings gear in the top right
Tap Schedule C Categories
Tap any category row to open the line picker
Choose the IRS Schedule C line it should report on (or tap Use default to restore the built-in mapping)
Your choice saves automatically
Default Mappings
Every built-in category comes pre-mapped to a sensible default:
Category | Schedule C Line | What It Covers |
Platform Fees | 10 -- Commissions and fees | eBay, Etsy, Poshmark, and other selling fees |
Shipping Labels | 27a -- Other expenses | Postage you pay to ship sold items |
Shipping Supplies | 22 -- Supplies | Boxes, tape, poly mailers |
Equipment | 22 -- Supplies | Small gear like printers, shelving, scales |
Inventory Purchase | Part III -- Cost of goods sold | What you paid for items you resell |
Other | 27a -- Other expenses | Anything else business-related |
Cost of Goods Sold Is Different
Inventory Purchase maps to Part III -- Cost of goods sold, not a regular expense line. This is intentional. Inventory isn't deducted like a normal expense in the year you buy it -- it flows through COGS and is counted against revenue when the item sells. That's why it shows "Part III" instead of a line number.
Good to Know
This feature is for US businesses -- Schedule C is a US tax form, so the screen only appears when your business country is set to the United States
You can pick from the full list of Schedule C Part II expense lines (8 through 27a) plus the Part III Cost of goods sold bucket
(default) next to a category means it's using the built-in mapping; once you change it, your override is saved to your account and syncs across devices
A category shown as Unmapped (in amber) won't appear on any Schedule C line -- map it so its spend is included in your tax report
Equipment defaults to Supplies (line 22). That's fine for small, inexpensive gear. A genuinely large equipment purchase may need to be depreciated (a different line) -- check with your tax professional and override the mapping if needed
Flippd is not tax software and doesn't file taxes for you -- always consult a tax professional
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