Taxes United StatesNativeImmigrant

How to File Schedule C in 2026 (Self-Employment Tax Form)

Last reviewed: October 2026

Verified against official agency guidelines

Schedule C is where sole proprietors and single-member LLCs report business income and expenses on their Form 1040. Good records make it a 2-hour job. The deductions are worth more than most people expect.

At a glance

Cost:: Free (self-file) to $150+ (preparer)
Total time:: 2–4 hours
Steps:: 7 steps
Where to apply:: irs.gov, uscis.gov, travel.state.gov, or your state agency

Last reviewed October 2026 against official sources. Re-checked every 6 months · next review due April 2027.

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Difficulty

Medium

Total Time

2–4 hours

Cost

Free (self-file) to $150+ (preparer)

Steps

7 steps

Reviewed

October 2026

The Steps

Follow these in order

Each card shows the phase, expected time, and any cost. Data checked against official US sources(October 2026).

0 of 7 steps

Before You Go 15 min
Confirm Schedule C is right for you
Use Schedule C if you are a sole proprietor, freelancer, gig worker, or single-member LLC. Partners and multi-member LLCs use Schedule K-1 (Form 1065) instead. S-corp owners take wages plus a K-1.
Forming an LLC for your business
Click to mark as done
Before You Go 30–60 min
Total your business income
Add up all your income. Add all 1099-NECs and 1099-Ks from payment platforms. Add any income paid with no form too. The IRS matches the 1099s on your return on its own. If you leave out income, you will get a CP2000 notice. You may have to pay penalties too.
Click to mark as done
Fill / Prepare 1–2 hours
Categorize expenses (Part II)
Put your costs in groups. Common groups are advertising, car costs, and supplies. Other groups are contract labor, insurance, and legal/professional services. More groups are rent, software subscriptions, and phone/internet for the business share. Travel and meals are groups too. Meals have a 50% limit. Keep personal costs out. Mixing personal and business costs is the fastest way to get an audit.
Click to mark as done
Fill / Prepare 30 min
Claim the home office deduction if eligible
You can use the simple method. It gives $5 per square foot, up to 300 sq ft. The most you can claim is $1,500 and you need no receipts. Or you can use the regular method. With this method, you use your real costs, like rent, utilities, and insurance. You multiply them by the share of your home you use for business. With either method, you must use the space for business only. You must use it on a regular basis too.
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Fill / Prepare 20 min
Calculate net profit and self-employment tax
Subtract your costs from your income. The result is your net profit. It goes on Line 31 of the form. If your net profit is $400 or more, Schedule SE works out your self-employment tax. The tax is 15.3% and it covers Social Security and Medicare. Employers pay this part for workers in normal jobs. You can take half of this tax off on your 1040.
Freelancer true-rate calculator
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Submit & Pay 30 min
Attach to Form 1040 and file
Schedule C, Schedule SE, and Form 1040 go together. File them all at the same time. Most tax software does this on its own. It puts them in its self-employment section. File online and choose direct deposit. That is the fastest way to get a refund.
Click to mark as done
Follow Up 30 min/quarter
Pay quarterly estimates next year
If you think you will owe $1,000 or more, pay tax four times a year. Pay in April, June, September, and January. Use Form 1040-ES. This helps you avoid a fine for paying too little during the year.
Click to mark as done

Be Careful

Don't make these mistakes

Leaving out income with no 1099. Add up all your income, including 1099-NECs and 1099-Ks and any income paid with no form. The IRS matches the 1099s on your return on its own, and leaving out income brings a CP2000 notice.

Mixing personal and business costs. Keep personal costs out of your expense categories. Mixing personal and business costs is the fastest way to get an audit.

Claiming the home office without exclusive use. With either the simple method or the regular method, you must use the space for business only and on a regular basis. The simple method gives 5 dollars per square foot up to 300 square feet, with a 1,500 dollar maximum.

Forgetting self-employment tax. If your net profit is 400 dollars or more, Schedule SE works out your self-employment tax of 15.3 percent. If you think you will owe 1,000 dollars or more next year, pay quarterly estimates in April, June, September, and January.

Showing a loss every year. A loss can be real, but if you show a loss year after year the IRS may ask if this is a business or a hobby. The hobby-loss rule assumes you make a profit in 3 of 5 years, so keep good records that show you really try to make a profit.

FAQ

Frequently Asked Questions

Can I deduct my phone and internet on Schedule C?

Yes, but you can only claim the share you use for work. If you use your phone 60% for work, you can claim 60% of the bill. Keep a log of your use for at least a month. The log backs up your claim.

What happens if I report a loss?

Yes, a loss can be real. You can often use it to cut tax on other income. But if you show a loss year after year, the IRS may ask a question. It may ask if this is a business or a hobby. The hobby-loss rule assumes you make a profit in 3 of 5 years. Keep good records. They show you really try to make a profit.

Do DoorDash and Uber drivers file Schedule C?

Yes. Work for a platform counts as self-employment income. The platform gives you a 1099-NEC and/or 1099-K. You report both on Schedule C. On Schedule C, you can claim mileage at 70¢/mile for 2025 as a cost. This claim usually saves you more than the standard way to claim car costs.

How do I file Schedule C in 2026?

File it with your 2025 federal return. It is due April 15, 2026. Report all of your business income. This includes 1099s and income paid with no form. Take off your business costs. Pay self-employment tax of 15.3% on net profit of $400 or more. For a home office, the simple method is still $5 per sq ft. You can claim up to 300 sq ft. The top amount is $1,500 max in this method.

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