C - Self-Employment Income

Tax Schedule C on Form 1040 is used by individuals who operate a sole proprietorship or are self-employed, including independent contractors, to report income or loss from a business. This form requires taxpayers to detail their business income, expenses, and potential deductions related to their business activities. The net profit or loss calculated on Schedule C is then reported on the individual's Form 1040 and contributes to their overall tax liability. This schedule is essential for those who have income from business activities not covered by an employer, such as freelancers, small business owners, and gig workers.