Edit Schedule C (Form 1040) online free, or download the PDF
Self-Employment Business Income Form: Profit or Loss From Business (Sole Proprietorship)
or choose your own copy:
- ✓ Official current version
- ✓ Free download, no account
- ✓ No card, no trial
- ✓ Never uploaded
Schedule C (Form 1040) in short
Schedule C reports the income and expenses of a business you ran as a sole proprietor. The net profit or loss on line 31 flows to Schedule 1 and usually to Schedule SE for self-employment tax. Freelancers, gig workers, and single-member LLC owners commonly use it. The current version is for tax year 2025.
| Issued by | Internal Revenue Service (IRS) |
|---|---|
| Current version | 2025 (checked 2026-10-25) |
| Who fills it in | Sole proprietors and people who practiced a profession on their own, where the main purpose is income or profit and the activity is continuous and regular. Also statutory employees, certain spouses in a qualified joint venture, and owners of a single-member domestic LLC that has not elected to be taxed as a corporation. File a separate Schedule C for each business. |
| Who receives it | The IRS, as part of your Form 1040, 1040-SR, 1040-SS, 1040-NR, or Form 1041. |
| Where to send it | Attach it to your Form 1040 (or other listed return) and file it with your return, by e-file or by mail to the address in the return instructions. |
| Deadline | Filed with your 2025 income tax return. The Form 1040 instructions give April 15, 2026, as the due date for most 2025 calendar year returns, not counting extensions. |
| Official links | Official page · Official PDF · Official instructions |
What changed
For 2025 the standard mileage rate is 70 cents per mile. The energy efficient commercial buildings deduction is now on line 27a and other expenses from line 48 are on line 27b. The instructions also note 100% bonus depreciation for certain property acquired and placed in service after January 19, 2025, a $2.5 million section 179 limit, and that the new tips, overtime, and car loan interest deductions are claimed on Schedule 1-A, not Schedule C.
How to fill out Schedule C (Form 1040), line by line
| Lines A and B | Principal business and business code Describe your main business activity and product or service. Line B takes the six-digit code from the Principal Business or Professional Activity Codes chart at the end of the instructions. |
| Lines C and D | Business name and EIN Leave C blank if you have no separate business name. On line D enter only an EIN issued to you. Do not enter your SSN or another taxpayer's EIN. |
| Line F | Accounting method Check cash, accrual, or other. |
| Line G | Material participation Answer whether you materially participated in the business during 2025. If No, the instructions explain limits on losses. |
| Lines I and J | Form 1099 filing Say whether you made payments in 2025 that require you to file Forms 1099, and if so whether you filed them. |
| Lines 1 to 7 | Income Line 1 is gross receipts. Include amounts shown on Forms 1099-NEC, 1099-MISC, and 1099-K for this business. Statutory employees check the box on line 1. Line 7 is gross income. |
| Lines 8 to 27b | Expenses Enter business expenses by category, such as advertising, car and truck expenses, contract labor, insurance, office expense, rent, supplies, travel, and deductible meals. Home office costs go only on line 30. |
| Line 9 | Car and truck expenses Use actual expenses or the 2025 standard mileage rate of 70 cents per business mile plus parking and tolls. If you claim this, complete Part IV or Form 4562. |
| Line 30 | Business use of home Use Form 8829, or the simplified method of $5 per square foot of qualifying space up to 300 square feet. Fill in the square footage boxes only if you use the simplified method. |
| Line 31 | Net profit or loss A profit goes on Schedule 1, line 3, and on Schedule SE, line 2 (statutory employees and notaries have different rules). For a loss, go to line 32. |
| Line 32 | At-risk box If you have a loss, check 32a if all investment is at risk or 32b if some is not. If you check 32b, attach Form 6198. |
| Part III, lines 33 to 42 | Cost of goods sold For businesses with inventory. Line 42 goes to line 4. |
| Part IV, lines 43 to 47b | Vehicle information Complete only if you claim car or truck expenses and do not have to file Form 4562. |
| Part V, line 48 | Other expenses List business expenses not covered on lines 8 to 27a or line 30. The total goes on line 27b. |
Common mistakes to avoid
- Combining two businesses on one Schedule C. The instructions say to file a separate Schedule C for each business.
- Combining statutory employee income and other self-employment income on one Schedule C. The instructions say to file two.
- Entering your SSN or a payer's EIN on line D. Only an EIN issued to you goes there.
- Leaving out income shown on Forms 1099-NEC, 1099-MISC, or 1099-K for the business.
- Putting home office costs on other expense lines. They go only on line 30.
- Using the simplified home office method for more than 300 square feet.
- Deducting the full cost of business meals. The business meals deduction is 50%.
- Not carrying line 31 to both Schedule 1, line 3, and Schedule SE, line 2, when you have a profit.
Questions about Schedule C (Form 1040)
Who has to file Schedule C?
Sole proprietors who run a business with continuity and regularity for profit. The IRS says a sporadic activity, a not-for-profit activity, or a hobby does not count as a business.
Does a single-member LLC file Schedule C?
Generally yes. The instructions say the sole member of a domestic LLC files Schedule C (or Schedule E or F, if applicable) unless the LLC elected to be treated as a corporation.
What is the 2025 mileage rate for Schedule C?
The 2025 instructions give 70 cents per business mile.
Can spouses who run a business together file Schedule C?
Spouses who are the only owners, both materially participate, and file jointly can elect to be a qualified joint venture. Each spouse then files a separate Schedule C. Otherwise they generally file Form 1065.
Where does the Schedule C profit go?
Line 31 goes on Schedule 1 (Form 1040), line 3, and generally on Schedule SE, line 2.
Can I claim the new no tax on tips deduction on Schedule C?
No. The instructions say the tips, overtime, and personal car loan interest deductions are claimed on Schedule 1-A, not on Schedule C.
Related forms
Tools for this form
Sources
Checked against the official sources on 2026-10-25. PDF Editor Hub is not affiliated with the Internal Revenue Service or any government agency. This page is general information, not legal or tax advice.