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Internal Revenue Service

Fill out Schedule C online

Profit or Loss From Business (Sole Proprietorship)

Schedule C is where a sole proprietor reports the income and expenses of a business or profession and works out the net profit or loss. An activity counts as a business if its main purpose is income or profit and you do it with continuity and regularity; a hobby or an occasional activity does not. The schedule is attached to Form 1040, 1040-SR, 1040-SS, 1040-NR or 1041.

Fill out Schedule CBlank form from the IRS

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Edition
Tax year 2026
Pages
2
Fillable fields
109
Checked against the IRS
November 8, 2026

GuruPDF is not affiliated with the Internal Revenue Service. This page explains the form in plain words; it is not legal or tax advice. Always check the official instructions before you file. This is the tax year 2026 version; the IRS keeps forms for earlier years.

Who uses Schedule C

  • Sole proprietors reporting the profit or loss of a business or profession
  • Self-employed people reporting business income shown on Forms 1099-NEC, 1099-MISC or 1099-K
  • Owners of a single-member domestic LLC that has not elected to be treated as a corporation
  • Statutory employees whose Form W-2 has the "Statutory employee" box checked
  • Spouses who run a business as a qualified joint venture (each files a separate Schedule C)

Before you start

  • Your social security number, and the business EIN if one was issued to you
  • The six-digit principal business or professional activity code from the chart at the end of the Schedule C instructions
  • Your income records for the year, including any Forms 1099-NEC, 1099-MISC or 1099-K you received
  • Receipts and records of business expenses, sorted by the expense lines in Part II
  • Beginning and ending inventory figures and purchase records, if you sell products
  • Your vehicle mileage records (business, commuting and other miles) if you claim car or truck expenses, and the square footage of your home and of the part used for business if you use the simplified method for a home office

How to fill out Schedule C

  1. Fill in the top section and lines A to E

    Enter your name and SSN. On line A describe your main business activity and its product or service, and on line B enter the six-digit code from the chart in the instructions. Line C is the business name (leave it blank if there is none). Line D is for an EIN issued to you; do not enter your SSN there, and leave it blank if you have no EIN. On line E give a street address, not a box number; you can skip it if you ran the business from the home address on your return. Estates and trusts leave the SSN box blank and put their EIN on line D.

  2. Answer lines F to J

    Line F asks for your accounting method: cash, accrual or other. Line G asks whether you materially participated in the business during 2026; if you answer No, the activity is passive and a loss may be limited. Check line H if you started or acquired the business during 2026, or restarted it after a temporary closing and did not file a Schedule C for it the year before. Lines I and J ask whether you made payments that require Forms 1099 and, if so, whether you filed or will file them.

  3. Report income in Part I (lines 1 to 7)

    Line 1 is gross receipts or sales; make sure it includes the business amounts shown on any Forms 1099-NEC you received. Check the box on line 1 only if the income came on a Form W-2 with the "Statutory employee" box checked. Enter returns and allowances on line 2 as a positive number. Line 4 is cost of goods sold from Part III, line 6 is other business income, and line 7 is your gross income.

  4. List expenses in Part II (lines 8 to 29)

    Enter each type of expense on its line, from advertising (line 8) to wages (line 26). On line 9 you can deduct your actual car or truck expenses or, if you qualify, use the standard mileage rate. Depreciation and the section 179 deduction go on line 13, using Form 4562 when required. Line 27a is the energy efficient commercial buildings deduction (attach Form 7205), and line 27b is the total from Part V (line 48). Add lines 8 through 27b on line 28 and subtract it from line 7 on line 29. Do not put home office costs anywhere in Part II.

  5. Figure home office, net profit or loss (lines 30 to 32)

    Line 30 is for business use of your home. Attach Form 8829, or if you use the simplified method, enter the total square footage of your home and of the business part, then use the Simplified Method Worksheet in the instructions. Line 31 is your net profit or loss: the form says to enter a profit on Schedule 1 (Form 1040), line 3, and on Schedule SE, line 2, and estates and trusts enter it on Form 1041, line 3. If you have a loss, go to line 32 first: check box 32a if all your investment is at risk or box 32b if some is not, and attach Form 6198 if you check 32b. The instructions say not to enter a loss on line 31 until you have applied the at-risk and passive activity loss rules.

  6. Complete Part III, cost of goods sold (lines 33 to 42)

    On line 33 choose how you value closing inventory: cost, lower of cost or market, or other (attach an explanation). Line 34 asks whether there was any change in how quantities, costs or valuations were determined between opening and closing inventory; if Yes, attach an explanation. Enter beginning inventory, purchases less items taken for personal use, labor (not amounts paid to yourself), materials and supplies, and other costs on lines 35 to 39, then add them on line 40. Subtract ending inventory (line 41) to get cost of goods sold on line 42, and carry it to line 4.

  7. Complete Parts IV and V if they apply

    Fill in Part IV (lines 43 to 47b) only if you claim car or truck expenses on line 9 and do not have to file Form 4562 for this business. It asks when the vehicle was placed in service, how many miles were business, commuting and other, whether a vehicle was available for personal use, and whether you have evidence for the deduction and if it is written. If you used more than one vehicle, the instructions say to attach a statement with the same information for each additional vehicle. In Part V, list each other business expense by type and amount that is not on lines 8 to 27a or line 30, and enter the total on line 48 and line 27b.

After you fill it out

Schedule C is not filed on its own. Attach it to the return named at the top of the form (Form 1040, 1040-SR, 1040-SS, 1040-NR or 1041) and file it with that return, along with any forms the lines ask for, such as Form 4562, 8829, 6198 or 7205. Carry the amount on line 31 to the lines the form names: Schedule 1 (Form 1040) and Schedule SE for individuals, or Form 1041 for estates and trusts. If you file a paper return, check where to send it on the IRS website.

Signing: Schedule C has no signature line. It is filed with your Form 1040 or other return, and the signature on that return covers the schedules attached to it.

Watch out for

  • This edition is for tax year 2026. For an earlier tax year, use that year's Schedule C from the IRS prior-year forms page.
  • If you had more than one business, complete a separate Schedule C for each one. If you had both self-employment income and statutory employee income, you must file two Schedules C.
  • Spouses who jointly own and run an unincorporated business are generally partners and file Form 1065 instead, unless they elect to be a qualified joint venture or the community property rule applies.
  • If you check box 32b, attach Form 6198. The instructions say processing of your return may be delayed if it is missing.

Questions about Schedule C

What counts as a business for Schedule C?

An activity qualifies if your main purpose is income or profit and you are involved in it with continuity and regularity. A sporadic activity, a not-for-profit activity or a hobby does not qualify; income from those is reported elsewhere, as explained in the instructions.

I have a single-member LLC. Do I use Schedule C?

Generally yes. A single-member domestic LLC is not treated as a separate entity for federal income tax, so its owner files Schedule C (or Schedule E or F if that fits the activity) unless the LLC elected to be treated as a corporation.

Do I need an EIN for line D?

Only if one was issued to you, for example because you have a qualified retirement plan or must file employment or excise tax returns. Do not enter your SSN or another person's EIN on line D; if you have no EIN, leave it blank.

Where does the net profit on line 31 go?

The form says to enter a profit on Schedule 1 (Form 1040), line 3, and on Schedule SE, line 2. Estates and trusts enter it on Form 1041, line 3. A loss first goes through line 32.

Do I have to complete Part IV about my vehicle?

Only if you claim car or truck expenses on line 9 and are not required to file Form 4562 for this business. If you must file Form 4562, you give the vehicle information there instead.

Official information

Page text last reviewed November 7, 2026.

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