Commissions and Fees You Pay Go on Schedule C Line 10
Schedule C is the tax form you fill out for your business. You put the commissions and fees you pay to make sales on line 10, which the form calls "Commissions and fees." That includes a referral fee you pay someone who sends you a customer, and the fees Etsy takes from each sale. You write off the full amount.
What goes on line 10, "Commissions and fees"
- A commission you pay a salesperson or an agent
- A referral fee you pay someone for bringing you a customer
- Fees taken out of your sales by Etsy, eBay, or Amazon
- Card fees taken out of your sales by Square, Stripe, or PayPal
What goes on a different line
- Money you pay a subcontractor or freelancer to do the work Line 11, Contract labor
- Fees for your accountant or lawyer Line 17, Legal and professional services
- Monthly fees on your business bank account Other expenses list
- A monthly plan for your online store or card reader Other expenses list
- A commission to sell your building, truck, or other business property Not line 10. Give the bill to your tax preparer with the sale papers
The "Other expenses" list is near the bottom of page 2 of Schedule C. Its total goes on line 27b.
Updated by Doug, owner of Shoeboxed. Rules from the IRS Schedule C instructions.
Costs that go on a different line
Money you pay a subcontractor goes on line 11
When you pay someone to do work for your business, like a subcontractor or a freelancer, that goes on line 11, "Contract labor." See what goes on line 11.
Fees for your accountant or lawyer go on line 17
The IRS puts accountant and lawyer fees on line 17, "Legal and professional services," with the cost of preparing your business tax forms. See what goes on line 17.
Bank fees go under Other expenses
Monthly fees, wire fees, and overdraft fees on your business bank account go on the "Other expenses" list, on page 2 of Schedule C.
A monthly plan for your online store or card reader goes under Other expenses
A plan you pay for each month, like a Shopify plan or a card reader's software plan, is a software subscription. The IRS puts software subscriptions on the "Other expenses" list. The fees taken out of each sale go on line 10.
A commission to sell your building or truck stays off line 10
When you sell business property, like a building or a truck, your tax preparer takes the commission out of what you got for it. The commission stays off line 10. If you sell trucks or buildings for a living, like a used car dealer, the commission goes on line 10.
Commissions you earn go on line 1, not line 10
Line 10 is for commissions you pay to other people. Commissions you earn are your income, and they go on line 1 with your other sales.
Selling on Etsy, eBay, or with a card reader? Put your full sales on line 1 and the fees on line 10
A Form 1099-K is the form a selling site or card company sends you to report your sales. It shows your sales before any fees came out.
Put that full number on line 1, your total sales. Put the fees on line 10, "Commissions and fees." The IRS doesn't list selling site or card fees by name, and line 10 is where they fit best. The site or card company sends a monthly statement that shows the fees. Save each one, and together they show your fees for the year.
Paid a person $2,000 or more in commissions in 2026? File a Form 1099-NEC
A Form 1099-NEC is the form that tells the IRS what you paid someone who is not your employee. For payments in 2026, you file one when you pay a person $2,000 or more in commissions and fees during the year. For payments in 2025, the amount was $600.
You usually don't file a 1099-NEC when you pay a corporation, like a business with "Inc." in its name, or when you pay by credit card or debit card. See when the 1099-NEC is due.
Where 5 common fees go on Schedule C
Say you sell handmade candles on Etsy and at a weekend market. Here is what you paid in 2026. The amounts are an example.
| What you paid in 2026 | Cost | Where it goes on Schedule C |
|---|---|---|
| Etsy listing, sale, and payment fees | $1,150 | Line 10, Commissions and fees |
| Square fees on card sales at the market | $240 | Line 10, Commissions and fees |
| A 20% commission to a gift shop that sold your candles | $600 | Line 10, Commissions and fees |
| Monthly fees on your business bank account | $120 | Other expenses list |
| Your tax preparer's bill for your business taxes | $400 | Line 17, Legal and professional services |
Line 10 gets $1,990 for the Etsy fees, the Square fees, and the gift shop's commission. The bank fees go on the "Other expenses" list, and the tax preparer's bill goes on line 17.
Keep each fee statement and commission record for 3 years after you file
The IRS wants a record of each write-off, and in most cases you keep it for 3 years after you file. Selling sites and card companies send a monthly statement that lists the fees.
Forward the statements you get by email to Shoeboxed, and snap any paper ones with the Shoeboxed app. Our software reads who charged you, the date, and the total, and we keep each one for as long as you have an account. When tax time comes, export the list or invite your bookkeeper or tax preparer in to see it.
Every Shoeboxed plan comes with a 30-day, 100% money-back guarantee. See the plans.
8 common questions about commissions and fees on Schedule C
Line 10, "Commissions and fees," is for what you pay out to make sales, like a commission to a salesperson, a referral fee, or the fees a selling site or card company takes from each sale. You write off the full amount. Money you pay a subcontractor goes on line 11. Bank fees go on the "Other expenses" list.
Keep every receipt for your business in one place with Shoeboxed
Snap them with the app, forward the ones that come by email, or mail the paper ones to us in a Magic Envelope, and we scan them. We keep them all, ready for your accountant.
See how Shoeboxed keeps your receipts