Schedule C—Profit or Loss from Business is the tax schedule that reports income or loss of a sole proprietorship. Whether you have a business or a hobby that you earn or try to earn some income, use Schedule C to report income earned or the loss.
If you have income or loss from a sole proprietorship, you must attach Schedule C to your federal income tax return, Form 1040.
Schedule C also helps you claim certain tax deductions for business expenses such as advertising, vehicle expenses, depreciation, interest, insurance, etc.
When filing Schedule C, you can use your Social Security Number or Employer Identification Number. If you don’t have either one of these, use your Individual Taxpayer Identification Number instead.
Content of Schedule C 2021
File Schedule C with Forms 1040, 1040-SR, 1040-NR, or 1041 for the 2021 tax season. Schedule C is made up of five parts. These are as follows.
- Cost of Goods Sold
- Information on Your Vehicle
- Other Expenses
The expenses part of Schedule C is what’s going to make the most of your time. Make sure to keep your records at the start of every tax year—not just for Schedule C but all the other tax forms and schedules as well.
On Schedule C, you can also state whether or not all or some of your investment is at risk which will help you in the future if you file for bankruptcy.
Fill Out Schedule C
The 2021 tax season is ahead of us. Start filing Schedule C to get a head start on taxes. Below Schedule C is completely free to file. This is the online version of Schedule C which you will need to print out a paper copy eventually. This is no replacement for e-filing Schedule C. This is simply the online fillable PDF of Schedule C—Profit or Loss from Business.
Once you’re done filling out, print out a paper copy by clicking the print button on top-right or download it as PDF.