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Schedule C

The form on which a sole proprietor reports business income and expenses on the personal return.

What is Schedule C?

The form on which a sole proprietor reports business income and expenses on the personal return.

Why it matters on your return

Schedule C net profit is subject to both income tax and self-employment tax, and it is one of the most examined schedules because expenses are self-reported. Clean books, a separate business account, and receipts for anything over a few hundred dollars are what make it defensible.

Example

A freelancer bills $90,000 and has $20,000 of expenses. Schedule C shows $70,000 of net profit, which flows to Form 1040 and to Schedule SE for self-employment tax.

Do I need a separate Schedule C for each business?

Yes, one per business activity. Two unrelated income streams get two schedules.

Last reviewed September 10, 2026. Tax rules change; confirm current law before acting.

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