Schedule C

Personal Finance

Schedule C is the IRS form sole proprietors and single-member LLCs use to report business income and expenses on their personal tax return (Form 1040). You'll list gross receipts, then subtract business expenses (advertising, supplies, mileage, home office, contractor payments) to arrive at net profit. The net profit then flows to Schedule SE for self-employment tax calculation and to Form 1040 as ordinary income. Schedule C is also where you'd claim the home office deduction, vehicle expenses, and depreciation on business assets. Keeping clean records year-round (separate bank account, accounting software) makes Schedule C preparation trivial.