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DictionaryIdentity and taxes

Schedule C: what it means

Schedule C is the form attached to Form 1040 to report the profit or loss from a business you operated or a profession you practiced as a sole proprietor, including gig work. An activity counts as a business if your main purpose is income or profit and you do it with continuity and regularity.

In Spanish it is

Anexo C

Also written as: Schedule C · Profit or Loss From Business

The full explanation

On the schedule you subtract your business expenses from your income: if expenses are lower, the difference is your net profit, which becomes part of your income on Form 1040. That figure is also used to calculate self-employment tax on Schedule SE.

An example

Lupita sells food she makes at home. With her return she attaches Schedule C, where she lists what she sold during the year and subtracts what she spent on ingredients and packaging.

You will see it in…

  • Your tax return (Form 1040), as an attached schedule
  • Your tax return transcript, which also shows the schedules
  • The Schedule C instructions on the IRS website, also in Spanish

Words that go with it

You will rarely see this word alone. These are the ones that show up with it on the same papers.

More guides that use “Schedule C”

More words on this topic: Identity and taxes

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Official sources

We sum up what these official sources say, in plain words. We add no rules they do not state; when a rule changes, the definition and its date change.

  1. 1. IRS · About Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship) · in English · Verified on October 17, 2026
  2. 2. IRS · Self-employed individuals tax center · in English · Verified on October 17, 2026
  3. 3. IRS · Acerca del Anexo C (Formulario 1040) · in Spanish · Verified on October 17, 2026