Schedule C

Schedule C is a tax form used by sole proprietors in the United States to report income and expenses from their business. It is part of the IRS Form 1040, which individuals file for their personal income tax. On Schedule C, you detail your business earnings, deduct allowable expenses like supplies or travel, and calculate your net profit or loss. This net amount then contributes to your overall taxable income. Essentially, it helps the IRS understand how much money your business made and how much you spent, ensuring you pay the correct amount of income tax.