Title: Medical Insurance Certificate

Only expenses directly related to earning money are deductible. ❌ Living expenses are not deductible.

I. Common Operating Expenses (Schedule C)

1️⃣ Advertising Fees
Advertising
(Business cards, website, WeChat/Xiaohongshu promotion, online advertising, etc.)

2️⃣ Vehicle Fees
Car and Truck Expenses

• Choose either the standard mileage method or the actual cost method.

3️⃣ Commissions and handling fees
Commissions and Fees

4️⃣ Contract worker wages (must be paid 1099)
Contract Labor (1099-NEC)

5️⃣ Commercial Insurance
Insurance
(Liability insurance, professional insurance, commercial vehicle insurance, etc.)

6️⃣ Interest expense
Interest
(Interest on commercial loans and equipment loans)

7️⃣ Mortgage interest (for business purposes)
Mortgage Interest (Business Portion)

8️⃣ Legal/Accounting/Professional Service Fees
Legal and Professional Services

9️⃣ Office Expenses
Office Expense
(Stationery, printers, consumables, etc.)

10. Employee Benefits/Retirement Plan
Pension and Profit Sharing
(Applicable only to eligible companies)

11️⃣ Vehicle/Tool/Equipment Rental
Vehicle, Machinery & Equipment Rental

12️⃣ Shop/Office/Factory Rent
Rent or Lease

13️⃣ Repair and maintenance costs
Repairs and Maintenance

14️⃣ Daily operating supplies
Supplies

15️⃣ Taxes and license fees
Taxes and Licenses
(Business license, commercial tax, etc.)

16️⃣ Travel expenses
Travel
(Airfare, hotel, business trip transportation)

17️⃣ Meal expenses (for business purposes)
Meals
⚠️ Must be work-related

18️⃣ Water/Electricity/Internet/Gas
Utilities

19️⃣ Salary (W-2 for full-time employees)
Wages

20️⃣ Mobile phone expenses (work-related percentage)
Cell Phone (Business Portion)

21️⃣ Internet Fee (Percentage of Work)
Internet (Business Portion)

22️⃣ Customer gifts/gifts
Gifts
⚠️ Annual limit applies

II. Inventory (Applicable to businesses that sell goods)

📦 Inventory Calculation

• beginning-of-year inventory
  Inventory at Beginning of Year

• Purchases this year
  Purchases (less cost of items withdrawn for personal use)

• Year-end inventory
  Inventory at the End of Year

III. Vehicle information (required if claiming vehicle expenses)

🚗 Vehicle Information

• Vehicle manufacturer (Make)

• Year / Model

• Vehicle depreciation

• Annual mileage

IV. Other Expenses

🧾 Other reasonable operating expenses
Other Expenses
(Please specify the purpose)

⚠️ Reminder (Very Important)

• ✅ Only fill in expenses directly related to income.

• ❌ Living expenses cannot be reported together.

• 📁 It is recommended to keep invoices/receipts/bank records for at least 3–7 years.

• 🚗 Vehicle fees cannot be paid using two methods simultaneously.