CashoutGlossary / Schedule C
Schedule C
The Form 1040 schedule where a sole proprietor, such as a 1099 driver or freelance bartender, reports business income, expenses and net profit.
Schedule C, Profit or Loss From Business, is where you report income and expenses from a business you run as a sole proprietor. If you work for yourself, for example 1099 delivery or rideshare driving, renting a chair as a stylist, or bartending private events for your own clients, this is your form.
Line 1 is gross receipts. Make sure it includes what's on your Forms 1099-NEC, and report all business income from all sources, whether or not a form came. Tips customers give you for that work are part of your business income.
Expenses come next. Car and truck expenses go on line 9; at the standard mileage rate for 2026 that is 72.5 cents a mile from January 1 to June 30 and 76 cents from July 1. If you own more than one business, file a separate Schedule C for each.
Line 31, net profit, goes two places: Schedule 1 line 3, for income tax, and Schedule SE line 2, for self-employment tax.
Common mistake: looking for the tips deduction here. The Schedule C instructions say the No Tax on Tips deduction is claimed on Schedule 1-A, not on Schedule C, so it does not lower your self-employment tax.
Related terms
Form 1099-NEC · Form 1099-K · Schedule SE · Mileage deduction · Standard mileage rate
