11c – Schedule C – Profit or Loss from Business (Sole Proprietorship)

📘 Schedule C – Profit or Loss from Business (Sole Proprietorship):-

🔹 Purpose :-
Schedule C is used by self-employed individuals, freelancers, independent contractors, and sole proprietors to report income and expenses from their business.

🔹 Who Must File?
You need Schedule C if you:-
*Run a business as a sole proprietor
*Work as an independent contractor (e.g., Uber driver, freelancer, consultant)
*Have side business income apart from your wages/salary

🔹 Key Information Reported:-
1.   Gross Receipts (Income) – Total business income earned
2.   Business Expenses – Deductible costs like:
– Office supplies, rent, utilities
– Advertising & marketing
– Vehicle mileage & travel
– Employee wages & contract labor
– Depreciation of assets
3.   Net Profit or Loss – Income minus expenses → reported on Form 1040, Schedule 1

🔹 Example
*Freelance designer earns $50,000
*Deductible expenses (software, laptop, internet, marketing, etc.): $15,000
*Net income = $35,000 → Reported on Schedule C and carried to Form 1040

📆 Deadline
Attach with Form 1040 → Due April 15 (or extended date if Form 4868 is filed).

👉 Tip: Keep detailed records of all income & receipts to maximize deductions and avoid IRS issues.