Schedule C (Form 1040), Profit or Loss From Business
If you are self-employed, it's likely you need to fill out an IRS Schedule C to report how much money you made or lost in your business. This form, titled Profit or Loss From Business (Sole Proprietorship), must be completed and included with your income tax return if you had self-employment income. In most cases, people who fill out Schedule C will also have to fill out Schedule SE, Self-Employment Tax.
What is a sole proprietorship?
You use Schedule C to report profits or losses from a sole proprietorship. A sole proprietorship is any business you operate and control that is not set up as a legal business entity such as a corporation or partnership. However, if you operate your business as a single-member LLC, you still need to complete the schedule. It does not have to be a business with employees or an office, but it can. It just means you're the boss, and there's no one above you writing your paychecks or withholding taxes from your pay. Even if you just use your lawn mower to cut your neighbors' grass for $10 per yard on weekends, you are running a sole proprietorship.
What is a Schedule C-EZ?
Many sole proprietors are able to use a simpler version called Schedule C-EZ. This form omits a lot of the detail in the full Schedule C and just asks for your total business receipts and expenses. However, you still need to complete a separate section if you claim expenses for a vehicle. You can use Schedule C-EZ only if you operate one sole proprietorship, do not report more than $5,000 in business expenses, are reporting a net profit, don't hold business inventory during the year, have no employees and are not claiming a deduction for a home-office.
For more information on the Schedule C-EZ, see this article.
If you need to correct or change any information you have entered on your Schedule C, the steps you take depends on if you have already filed your tax return.
- If you have yet to file your return, simply navigate to the area you need to change on your Schedule C, and correct or change your information.
- For example, if you need to correct a 1099-MISC, navigate to that form and make your changes.
- If you have already filed your return, you will need to amend your return. Please click here for instructions.
For questions about printing, please click here.
If you have questions about the availability of Schedule C, please click here.