IRS Schedule C (Form 1040)
Report the income and expenses of a business you run as a sole proprietor.
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About IRS Schedule C (Form 1040)
Schedule C, Profit or Loss From Business, attaches to your Form 1040 and reports the income and expenses of a business you operate as a sole proprietor or a single-member LLC. The net profit or loss it produces flows to your 1040 and affects your self-employment tax.
This page is a general guide and a fillable helper, not tax advice. Always download and file the current official form from the IRS at https://www.irs.gov/forms-pubs/about-schedule-c-form-1040 and confirm the lines match your business before you file.
Who needs to complete it
- Sole proprietors reporting income and expenses from a business or profession.
- Single-member LLC owners treated as disregarded entities for tax purposes.
- Freelancers and independent contractors reporting self-employment income.
- Gig workers and side-business owners with business income to report.
How to fill out IRS Schedule C (Form 1040)
- 1Enter your name, the business name, and the type of business or professional activity.
- 2Provide your business address and accounting method.
- 3In Part I, report gross receipts, returns, cost of goods sold if any, and your gross income.
- 4In Part II, list your business expenses by category, such as advertising, supplies, and travel.
- 5Subtract total expenses from gross income to find your tentative profit or loss.
- 6Complete Part III for cost of goods sold if you carry inventory, and Part IV for vehicle information if you claim car expenses.
- 7Use Part V to list any other expenses that do not fit the standard categories.
- 8Carry the net profit or loss to your Form 1040 and Schedule SE for self-employment tax as directed.
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Frequently asked questions
Who files a Schedule C?
Sole proprietors and most single-member LLC owners use it to report business income and expenses with their Form 1040. This is a general guide, not tax advice, so confirm your situation with the current IRS instructions.
What expenses can I deduct?
You can generally deduct ordinary and necessary business expenses. The form lists common categories, and the instructions explain the rules. Keep records to support what you claim.
How does Schedule C affect self-employment tax?
A net profit usually flows to Schedule SE, where self-employment tax is figured. Both amounts then carry to your Form 1040. See the instructions for the current details.
Is this the official IRS form?
This is a fillable helper for understanding the parts. Always download and file the current official form from the IRS at https://www.irs.gov/forms-pubs/about-schedule-c-form-1040 and confirm the lines match.