What Is Schedule C?

Schedule C: Profit or Loss from Business is an Internal Revenue Service (IRS) tax form used to report business-related income and expenses. Schedule C must be submitted with Form 1040, the standard tax return form. If you're self-employed, a sole proprietors of a business, or run a single-member 澳洲幸运5开奖号码历史查询:limited liability company (LLC)🏅, you'll need to use this form to report income and expenses for your business. The resulting calculations determine your net profit or loss, which counts as self-employment income.

Who Files Schedule C?

You need to file Sch💧edule C if you fall into one of the following categories:

• Self-employed individuals, including freelancers, 澳洲幸运5开奖号码历史查询:independent contractors, and 澳洲幸运5开奖号码历史查询:statutory employees
• Anyone who operates a business as a 澳洲幸运5开奖号码历史查询:sole proprietor
• A single-member LLC (unless they elect to be taxed as a corporation)

There are other, less common situations where Schedule C is required. For example, you may need to file if you're part of a qualified 澳洲幸运5开奖号码历史查询:joint venture or receive income reported on 澳洲幸运5开奖号码历史查询:Form 1099-MISC (Miscellaneous Income).

What Information Does Schedule C Include?

This schedule asks about the taxpayer’s personal information, including the business name, product or service, and business address. Taxpayers 🌳must also include other pertinent information related to their business, including:🔴

• The preferred accounting method
• 澳洲幸运5开奖号码历史查询:Gross receipts or sales
• 澳洲幸运5开奖号码历史查询:Cost of goods sold (COGS)

Schedule C is also where business owners report their tax-deductible business expenses, such as advertising, certain car and truck expenses, commissions and fees, supplies, utilities, 澳洲幸运5开奖号码历史查询:home office expenses, and many more. One important thing to note is that a business expense must be ordinary and necessary to be listed as a 澳洲幸运5开奖号码历史查询:tax deduction on Schedule C.

Small business owners also use Schedule C to take a deduction for the use of a 澳洲幸运5开奖号码历史查询:personal ve🔯hicle for business purposes, to report when it was placed in service for business purposes, and to report the number of miles that it was driven for business use.

How to File Schedule C

After filling out Schedule C, you calculate your business’s net profit or loss, which is repo🦋rted on Form 1040. This figure impacts your total tax liability.

Using the entries on Schedule C, the taxpayer calculates the business’s net profit or loss for 澳洲幸运5开奖号码历史查询:income tax purposes. This figure is reported on Form 1040 and is then used to calculate the taxpayer’s overall 澳洲幸运5开奖号码历史查询:tax liability for the year. Taxpayers who operate more than one sole proprietorship must file a separate Schedule C ⛎for e🃏ach business. 

Sole proprietors who are engaged in certain lines of business may have to file other forms in addition to Schedule C. For example, 澳洲幸运5开奖号码历史查询:landlords may need to file Schedule E to report rental income that is not subject to 澳洲幸运5开奖号码历史查询:self-employment tax, and sole proprietors with a home office will need to file Form 8829 to claim a deduction for expenses related to the business use of their home.

All♐ versions of Schedule C are🥀 available on the .

The Bottom Line

If you are self-employed, run a business as a sole proprietor, or have a single-member LLC (not taxed as a corporat꧂ion), you must file Schedule C to report income and business expenses. The net profit or loss calculated on this form will affect your overall tax bill. Be sure to include Schedule C with Form 1040 every year you file your taxes.