Schedule C, Profit or Loss From Business
Schedule C is where sole proprietors and single-member LLCs report business income and expenses. The bottom line flows to your 1040 and to Schedule SE for self-employment tax.
This is the genuine IRS PDF, unmodified. Source: IRS official page.
What is Schedule C (Form 1040)?
Schedule C, Profit or Loss From Business, turns a year of self-employment into one net figure. Part I captures gross receipts, Part II the expense categories from advertising to wages, and later parts handle cost of goods sold, vehicle information, and other expenses. Net profit is taxed as income and also feeds the 15.3% self-employment tax computed on Schedule SE.
Freelancers, gig workers, and anyone with 1099-NEC income typically file it, one schedule per business.
Who files Schedule C (Form 1040)?
- Sole proprietors and independent contractors
- Single-member LLC owners who have not elected corporate taxation
- Gig economy workers: rideshare, delivery, marketplaces
- Anyone with a side business, even a small or part-time one
How to fill out Schedule C (Form 1040)
- Fill in the business header: name, code, accounting method, and whether you materially participated.
- Report gross receipts and returns in Part I.
- Enter expenses by category in Part II, keeping records that support each line.
- Complete cost of goods sold in Part III if you sell products, and vehicle details in Part IV if you claim car expenses.
- Download the PDF and attach it to your 1040, then carry the net profit to Schedule SE.
Quick fill Schedule C (Form 1040) on this page
Prefer to see the form itself while you type? Open Schedule C (Form 1040) in the editor to fill it on the actual pages, add a signature, and download.
Frequently asked questions
Do I need an LLC or EIN to file Schedule C?
No. A sole proprietorship under your own name and SSN is enough. An EIN is only needed in specific cases, such as having employees.
What if my business lost money?
A genuine loss generally offsets other income, subject to at-risk and hobby-loss rules. Repeated losses year after year invite scrutiny of whether the activity is run for profit.
Can I deduct my home office?
If part of your home is used regularly and exclusively for the business, yes, either the simplified $5 per square foot method (up to 300 sq ft) or actual expenses via Form 8829.