Free IRS form · Official PDF

Schedule C: Profit or Loss From Business (Sole Proprietorship)

2025 tax year · Download free — no email, no account

If you freelance, run a side hustle, drive rideshare, or operate any unincorporated business, Schedule C is where that business lives on your tax return. Download the official PDF free and see what goes on every part of it.

Schedule C — Profit or Loss From Business (Sole Proprietorship)

Free · Official IRS PDF · 2025 tax year · Print-ready
↓  Download Schedule C (PDF) Instructions: irs.gov

What is Schedule C?

Schedule C, Profit or Loss From Business, attaches to Form 1040 and reports the income and expenses of a sole proprietorship — which includes most freelancers, gig workers, independent contractors, and single-member LLCs that haven't elected corporate taxation. The bottom line (net profit or loss) flows to Schedule 1 and into your 1040.

Its real power is the expense section: advertising, car and truck costs, contract labor, insurance, office supplies, legal and professional fees, home office (via Form 8829 or the simplified method), and more. Every legitimate expense you record reduces both income tax and self-employment tax — which is why organized bookkeeping literally pays.

Who files Schedule C?

  • Freelancers and independent contractors — anyone receiving 1099-NEC income.
  • Gig economy workers — rideshare, delivery, task platforms.
  • Single-member LLC owners taxed as disregarded entities (the default).
  • Side-hustlers — even small or part-time business income belongs on a Schedule C if it's carried on for profit.

Deadlines

Schedule C files with your Form 1040, so the usual April deadline applies (October with an extension). Separately: net self-employment earnings of $400+ trigger Schedule SE, and profitable years usually mean quarterly estimated payments along the way.

How to fill out Schedule C

  1. Identify the business

    Name, address, principal activity code, and accounting method (cash, for nearly all small businesses).

  2. Part I — gross income

    All business receipts for the year, whether or not a 1099 was issued for them. 1099-K and 1099-NEC totals should reconcile with what you report.

  3. Part II — expenses

    Enter costs in the pre-labeled categories; use Part V for anything that doesn't fit. Vehicle users: mileage log or actual expenses, not both.

  4. Home office and cost of goods

    Part III covers inventory-based businesses; the home office deduction comes via Form 8829 or the $5/sq-ft simplified method.

  5. Net profit → Schedule SE and Form 1040

    Line 31's profit flows to Schedule 1 and to Schedule SE, which calculates the 15.3% self-employment tax.

Schedule C — frequently asked questions

If you carried on the activity for profit, yes — there's no minimum. And once net earnings hit $400, Schedule SE and self-employment tax kick in too. Hobby income (no profit motive) is reported differently, without business deductions.
Yes, if it's a single-member LLC that hasn't elected S-corp or C-corp treatment — the IRS "disregards" the entity and the business reports on your personal Schedule C. Multi-member LLCs file a partnership return instead.
Ordinary and necessary costs of running the business: software, supplies, advertising, contract labor, business insurance, professional fees, business mileage, a qualifying home office, and more. Personal expenses never qualify; mixed-use items get prorated.
A genuine loss generally offsets your other income, reducing total tax. Repeated losses year after year invite IRS scrutiny under the hobby-loss rules — the usual rule of thumb is profit in 3 of 5 years to comfortably establish a profit motive.

Related IRS forms

Schedule SESelf-Employment TaxForm 1040-ESEstimated Tax for IndividualsForm W-9Request for Taxpayer Identification Number and CertificationSchedule 1Additional Income and Adjustments to Income

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Important: BizDocs is not affiliated with or endorsed by the Internal Revenue Service. The forms offered on this page are official, unmodified IRS documents provided free as a public resource; the IRS publishes them in the public domain at irs.gov. The guides on this page are general information, not tax or legal advice — tax rules change and depend on your situation, so verify details in the official IRS instructions or with a qualified tax professional before filing.