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Schedule C: What It Is, Who Has to File It

Schedule C is an IRS tax form that reports profit or loss from a business. Sole proprietors or single-member LLCs typically use the form.

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Editor & Content Strategist

Tina Orem is an editor and content strategist at NerdWallet. Prior to becoming an editor and content strategist, she covered small business and taxes at NerdWallet. She has a degree in finance, as well as a master's degree in journalism and an MBA. Previously, she was a financial analyst and director of finance at public and private companies. Tina's work has appeared in a variety of local and national media outlets.

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Head of Content, New Verticals

Chris Hutchison helped build NerdWallet's editorial operation and has directed coverage across banking, investing, taxes and insurance. He now leads a team exploring new verticals. Before joining NerdWallet, he was an editor and programmer at ESPN and an editor at the San Jose Mercury News.

If you freelance, have a side gig, run a small business or otherwise work for yourself, you may need to fill out IRS Schedule C at tax time. Here’s a simple explainer of what IRS Schedule C is for, who has to file one and some tips and tricks that could save money and time.

What is Schedule C?

IRS Schedule C is a tax form for reporting profit or loss from a business. You fill out Schedule C at tax time and attach it to or file it electronically with Form 1040. Schedule C is typically for people who operate sole proprietorships or single-member LLCs.

A Schedule C is not the same as a 1099 form. Although, you may need IRS Form 1099 (a 1099-NEC or 1099-K in particular) to fill out a Schedule C.

on Anthem Tax Services' website

on TaxRise's website

Who files a Schedule C form?

Schedule C is for two types of businesses: sole proprietors or single-member limited liability corporations (LLCs). Schedule C is not for C corporations or S corporations.

For tax purposes, the IRS says you’re in business if you pursue your gig continually and regularly to make money.

If your side gig involves rental income or royalties, you may need to fill out Schedule E.

If your side gig is farming, you may need to fill out Schedule F.

Sole proprietorships are unincorporated businesses that are owned and run by one person who is entitled to all of the profits and is responsible for all of the losses and liabilities. People who freelance, have a side gig, are independent contractors or operate a business by themselves often choose them.

Single-member LLCs are business entities owned by just one person. In most cases, there’s no distinction between the owner and the LLC for income tax purposes; the business’s income and profits go right onto the owner’s personal tax return.

You may have to file a Schedule C even if you have a regular day job where you’re someone’s employee. So if you’re freelancing on the side, your self-employment means you’ll probably need to add the Schedule C to your to-do list.

» Thinking about hiring a financial advisor? Here are 10 questions to ask

What is on a Schedule C form?

Schedule C is a place to report the revenue from your business and the types of expenses you incurred to run your business. Your business income minus your business expenses is your net profit (or loss). You report your net profit as income on Form 1040.

» MORE: 15 popular tax deductions for the self-employed

How to fill out Schedule C

Here's some information you’ll need:

Your business income statement and balance sheet for the tax year.

Receipts for your business expenses.

Inventory records, if you have inventory.

Mileage and other vehicle records if you used one for business.

Here's the basic structure of Schedule C:

Part I is where you tally your sales and report your cost of goods sold so you can see your gross profit.

Part II is where you report your business expenses. There are over two dozen categories to help you stay organized, such as advertising, car and truck expenses, legal and professional services, rent, travel and meal expenses and other costs. The IRS' Schedule C instructions page explains the rules for each type of expense

Part III helps you calculate your cost of goods sold.

Part IV is a place to report certain information on a vehicle if you have car- or truck-related business expenses.

Part V is a place to list other business expenses that didn’t fit into the categories in Part II.

2025 Schedule C

» MORE: Check out our tax guide for freelancers and self-employed people

on Anthem Tax Services' website

on TaxRise's website

Schedule C: Tips and tricks

You may need to fill out more than one Schedule C. It’s one Schedule C per side gig. So if you have two side gigs, you’ll need to fill out two Schedule Cs.

Be sure to take advantage of other tax deductions. Self-employment can score you a lot of tax deductions, and one of the newest is the qualified business income deduction. If you qualify, you can deduct a portion of your business’s net income on your tax return.

Measure your home office’s square footage. If you have a home office, you can probably deduct some expenses associated with keeping it up and running if you’re self-employed. The IRS offers a flat-rate deduction of $5 per square foot for up to 300 square feet of home office space

Think about hiring someone to help. Most name-brand tax software providers sell versions that can prepare Schedule C. However, you’ll likely need to purchase the highest-end version to get Schedule C functionality. That might end up costing less than paying someone else to do your taxes (though it could cost you time). Don’t underestimate the value of a good financial advisor or accountant.

Make estimated quarterly tax payments to avoid penalties. Taxes are a pay-as-you-go arrangement in the United States; when you earn money, the IRS wants its cut as soon as possible. That’s why employers withhold taxes from employees' paychecks. But when you’re paying yourself, that’s probably not happening. To avoid late-payment penalties, you can make estimated quarterly payments to the IRS.

» How to find a CPA or tax accountant near you

Helpful resources

888-708-2872

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on Priority Tax Relief's website