What is a schedule C and where do I enter it?

If you have a side hustle, freelance, or own your own business, you may need to file Schedule C at tax time. This tax form allows you to claim business losses or profits for the current tax filing year.

There are two types of filers who will fill out a Schedule C: sole proprietors and those with a limited liability company or LLC. If you never officially formed a business, but have self-employment income, you’re considered a sole proprietor.

When filling out Schedule C, you’ll need to provide the total amount of profit your business earned. So, if you walked dogs for cash in 2022, you’ll provide your total earnings for the year. You may receive 1099 tax forms from clients or payment processors to help with this step.

You also get to deduct business expenses on your Schedule C. For instance, if you have a home office you use solely for your self-employment business, you can deduct this expense. If you bought business supplies, like a laptop, website hosting costs, or tools used for your trade, you can also deduct the costs of these items. You can even deduct certain travel expenses.

It’s important to keep receipts of these transactions to ensure your figures are correct. If you have inventory, providing inventory records will be helpful, just as a mileage report will be helpful for tracking mileage. 

You’ll file your Schedule C, along with your 1040.