I delivery papers for a local newspaper and they take some things out of our weekly check that I am not sure how, or where, to list on a schedule c.First, they withhold $12 each week to go towards a cash bond of $500 once that amount has been reached. Can I write-off the $12 since it my money that they are essentially holding?Second, from time to time we are penalized for having delivered a paper to someone that might have gone on vacation. This penalty is $1 and for 2008 I had $20 "penalized" against me. Can this be taken as a bad debt or some kind of loss? Is there anywhere I can write this off?
      Answer1:Can you get the $500 back after some period of time? If yes, then it is not an expense -- no deduction. If no, then it is an expense. Deduct it. Write it in as "insurance".For the penalties, these are reductions / offsets to your income. You can deduct them against the amounts received.