Vendor category
What tax category is a Fiverr charge?
A Fiverr charge normally falls under Contract labor. This is because a business typically uses Fiverr to purchase services from independent contractors, such as freelance writers, designers, or virtual assistants. If you're using Fiverr for personal purposes, like hiring a freelancer to create a custom video for a party, the charge would be considered a personal expense.
FIVERR ORDER 41822Category
6011Contract labor
Schedule C, line 11
Confidence
95%
- Decided by
- a vendor rule
- Deductible
- Generally deductible
- Why
- matched seed rule 'fiverr'
When you use Fiverr for your business, you're hiring independent contractors to perform specific tasks. These services are considered contract labor because you're not employing the contractor directly, but rather engaging their services on a project-by-project basis.
In contrast, if you were to hire a freelancer to create a custom video for a personal event, such as a wedding or a birthday party, the charge would be considered a personal expense. This is because the video is for a personal purpose, rather than a business one.
Personal vs Business
Distinguish between personal and business use of Fiverr.
Contractor vs Employee
Understand the difference between hiring a contractor and an employee.
Service Type
Consider the type of service you're purchasing from Fiverr.
Categorize your own transactions
This page asked the same engine your books would. Run it over a whole year of statements and receipts and get the categories, the reconciliation and the fix list.
Questions people ask
- What if I'm not sure if a Fiverr charge is for business or personal use?
- You can review your Fiverr order and the service you received to determine the purpose of the charge. If you're still unsure, consult with a tax professional.
- Can I deduct the cost of a Fiverr charge on my tax return?
- If the charge is for a business purpose, you may be able to deduct it as a business expense on your tax return. However, you should consult with a tax professional to determine the specific rules and regulations that apply to your situation.
- How do I categorize a Fiverr charge on my tax return?
- You should categorize a Fiverr charge as Contract labor if it's for a business purpose. If it's for a personal purpose, you should categorize it as a personal expense.
Related expense categories
More in vendor categories
General information about how bookkeeping and Schedule C categorization work — not tax advice. BookkeeperLens is a demo running on synthetic data.