IRS Schedule C: Profit or Loss from Business (Sole Proprietorship)
Schedule C is the part of Form 1040 where sole proprietors and single-member LLC owners report business income and expenses. The profit or loss flows to your return, and self-employment tax is usually figured on Schedule SE. Income from 1099-NEC or 1099-K forms often belongs here.
What this form is for
It totals business income, subtracts allowed expenses and shows the net profit or loss for the year.
When people usually use it
Freelancers, gig workers and small business owners file it every year. It often comes up in CP2000 cases about unreported 1099 income.
What to have ready
- 1099-NEC and 1099-K forms
- Income and expense records
- Mileage and home office records, if used
Notices that mention it
- IRS Notice CP2000: Proposed changes to your tax return
- IRS Notice CP2501: Income information doesn't match
- IRS Notice CP3219A: Notice of deficiency (90-day letter)
Related forms
- Schedule SE: Self-Employment Tax
- Form 1099-NEC: Nonemployee Compensation
- Form 1099-K: Payment Card and Third Party Network Transactions
- Form 1040-ES: Estimated Tax for Individuals
Read the IRS page
IRS.gov page for Schedule C (opens in a new tab). The IRS page is the final word on this form.
Frequently asked questions
What is IRS Schedule C?
Schedule C is the part of Form 1040 where sole proprietors and single-member LLC owners report business income and expenses. The profit or loss flows to your return, and self-employment tax is usually figured on Schedule SE. Income from 1099-NEC or 1099-K forms often belongs here.
Where do I get Schedule C?
Get it from IRS.gov. The IRS page for Schedule C, https://www.irs.gov/forms-pubs/about-schedule-c-form-1040, has the latest revision, the instructions and any recent changes.
Do I need to file Schedule C?
That depends on your own facts. The instructions on IRS.gov explain who uses Schedule C, and any IRS letter you got may say what it needs from you. This is not tax advice.
What should I have ready for Schedule C?
Gather: 1099-nec and 1099-k forms; income and expense records; mileage and home office records, if used. The instructions on IRS.gov list everything the form asks for.
If you have an IRS letter
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