27a — Other Expenses Updated for tax year 2025

What this line means

The total from Part V (line 48) — a catchall for legitimate business expenses that do not fit any of the specific categories on lines 8-26. You list each expense type and amount in Part V, total them on line 48, and bring that total here. Common entries include bank fees, continuing education, trade journal subscriptions, uniforms, bad debts, and business gifts.

Does this apply to you?

• You have business expenses that do not match any category on lines 8-26
• You pay bank fees, merchant account fees, or wire transfer fees for business accounts
• You paid for continuing education, professional development, or certification courses
• You gave business gifts to clients (deductible up to $25 per recipient per year)
• You wrote off uncollectible accounts receivable as bad debts

Easy to overlook

Continuing education and professional development Courses, workshops, conferences, and books related to maintaining or improving skills in your current business are deductible here. A web developer taking a JavaScript course, a photographer attending a lighting workshop, or a consultant buying business strategy books — all deductible. Education that qualifies you for a new profession is not deductible. ¹ [SOURCE: General filing pattern — missed miscellaneous business deductions]

Business gifts are deductible up to $25 per person Client gifts — thank-you baskets, holiday gifts, closing gifts — are deductible up to $25 per recipient per year. The limit is per person, not per gift. This is a small deduction, but it adds up if you have many clients. Incidental costs like engraving, wrapping, and shipping do not count toward the $25 limit. ² [SOURCE: IRS Schedule C instructions — Line 27a]

Watch out for this

Lumping a large, vague amount into “other expenses” without itemizing. The IRS expects you to list each type of expense separately in Part V. An entry of “Other expenses: $15,000” with no breakdown is an audit magnet. Break it down: bank fees $400, continuing education $2,000, trade subscriptions $300, and so on.

Related lines on your return

• Line 48 — Schedule C — Part V where other expenses are listed and totaled
• Line 28 — Schedule C — Total expenses; this line feeds into the total
• Line 8-26 — Schedule C — Named expense categories; use those first before line 27a