Schedule C (Profit or Loss from Business)
The federal tax form filed with Form 1040 to report income and expenses of a sole proprietorship or single-member LLC treated as a disregarded entity.
Detailed Explanation
Schedule C reports gross receipts, cost of goods sold, and operating expenses (advertising, supplies, vehicle, home office, insurance, professional services, etc.) to compute net profit or loss. Net profit flows to Form 1040 as ordinary income and to Schedule SE for self-employment tax (15.3% on the first $176,100 of 2025 net earnings, 2.9% above that). Self-employed taxpayers can deduct half of self-employment tax above the line.
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Learn about Individual Tax PreparationRelated Terms
Form 1040 (US Individual Income Tax Return)
The annual federal income tax return filed by US citizens and resident aliens to report income, deductions, credits, and tax liability.
Self-Employment Tax
The Social Security and Medicare tax (15.3% combined) paid by self-employed taxpayers on their net earnings from self-employment.
Home Office Deduction
A deduction for the business-use portion of a home, available to self-employed taxpayers who use part of their home regularly and exclusively for business.
Standard Mileage Deduction
A simplified method of deducting vehicle expenses based on business miles driven, using the IRS-published standard mileage rate.
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