Schedule C (Form 1040)

Schedule C (Form 1040) is a tax form used by sole proprietors and self-employed individuals to report income and expenses from their business activities. It helps calculate the profit or loss of a business, which then influences their overall tax liability. The form requires details about the business, such as income received and expenses paid, including items like supplies, advertising, and travel. This information ensures that the IRS accurately assesses taxable income from self-employment, allowing the taxpayer to pay the correct amount of taxes owed based on their business earnings.