What is Schedule C?
Schedule C reports the profit or loss from a business you operate as a sole proprietor or single-member LLC. It calculates net profit by subtracting business expenses from gross receipts. The net profit flows to Form 1040 as income and to Schedule SE for self-employment tax.
SupportedKey Lines
| Line | Description | Source |
|---|---|---|
| Line 1 | Gross receipts/sales | 1099-NEC + 1099-K aggregated per business |
| Line 2 | Returns and allowances | Preparer input |
| Line 4 | Cost of goods sold | Preparer input |
| Lines 8–27 | Business expenses | Preparer input (advertising, car, labor, rent, utilities, etc.) |
| Line 28 | Total expenses | Sum of Lines 8–27 |
| Line 29 | Tentative profit | Line 7 - Line 28 |
| Line 30 | Home office deduction | Preparer input |
| Line 31 | Net profit or loss | Line 29 - Line 30 |
How PaisaTax Handles It
- Auto-created when a 1099-NEC or 1099-K is added, or manually added for businesses without 1099s
- Slotted — one slot per business. Each slot tracks its own income sources and expenses.
- 1099 assignment: Each 1099-NEC/1099-K is linked to a specific Schedule C via
scheduleCSlotRef. The engine aggregates gross receipts per business. - Preparer inputs: All expense lines (8–27) are entered by the preparer from business records
Common Situations
- Multiple businesses: Create one Schedule C per business. Assign each 1099-NEC/K to the correct business.
- Home office: Enter the deduction on Line 30. Simplified method: $5/sq ft up to 300 sq ft ($1,500 max).
- Vehicle expenses: Either standard mileage ($0.70/mile for 2025) or actual expenses. Enter on Line 9.
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Info
Meals are deductible at 50% of cost. PaisaTax applies the 50% limitation automatically when you enter the full meal expense amount.