Schedule CProfit or Loss from Business (Sole Proprietorship)
Reports self-employment income and business expenses for sole proprietors, freelancers, and gig workers.
Who needs to file this form
Anyone who operates a business as a sole proprietor or earns freelance/contract income files Schedule C. This includes: full-time freelancers, side hustlers, gig workers (Uber, DoorDash, Instacart), Etsy sellers, consultants, tutors, and anyone who receives 1099-NEC income. If you have a single-member LLC that didn't elect S-corp status, you also file Schedule C.
Key Deadlines
File with your Form 1040
April 15, 2027
Quarterly estimated taxes due
Apr 15, Jun 15, Sep 15, Jan 15
If you expect to owe $1,000+ in combined income and SE tax
Step-by-Step Filing Guide
Report your gross income (Part I)
Enter gross receipts from all 1099-NECs, 1099-Ks, and other business income. Include cash payments and income from clients who didn't send a 1099 (under $600 threshold). Subtract returns and cost of goods sold to get gross profit.
List business expenses (Part II)
Common deductions: advertising, car expenses (standard mileage rate: 67 cents/mile for 2026), insurance, internet/phone (business portion), office supplies, software/subscriptions, professional services, rent, travel, and meals (50% deductible).
Claim home office deduction (if applicable)
Simplified method: $5 per square foot, max 300 sq ft ($1,500 max deduction). Regular method: calculate actual expenses (rent/mortgage interest, utilities, insurance) based on the percentage of your home used exclusively for business.
Calculate net profit or loss (Line 31)
Gross income minus total expenses = net profit (or loss). This number flows to Form 1040 Line 8 as income, and to Schedule SE for self-employment tax calculation. A loss can offset other income on your return.
Carry net profit to Schedule SE and Form 1040
Your net profit is subject to both income tax (at your marginal rate) and self-employment tax (15.3%). Complete Schedule SE to calculate SE tax. Deduct half of SE tax as an adjustment to income on Schedule 1.
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