IRS Schedule C is not filed on its own. It is completed as a supporting schedule and included with Form 1040 as part of an individual income tax return. The purpose of this relationship is to integrate business activity into the overall tax reporting framework for individuals.
Role of Schedule C Within the Individual Return
Schedule C serves to calculate the net profit or loss from a trade or business operated by an individual. Form 1040 is the primary return that aggregates income, adjustments, taxes, and credits. Schedule C feeds its result into Form 1040 rather than replacing it.
How Information Flows From Schedule C to Form 1040
After income and expenses are reported on Schedule C, the resulting net profit or net loss is carried into the individual return. This amount becomes part of the total income calculation on Form 1040 and may affect other schedules that depend on business results.
Interaction With Other Schedules
Schedule C often interacts with additional schedules that are triggered by business activity. One common example is Schedule SE, which uses Schedule C results to calculate self-employment tax. This interaction is explained in Schedule C and Schedule SE.
Filing Timing and Submission
Because Schedule C is filed together with Form 1040, it follows the same filing timeline and extension rules as the individual return. Filing deadlines are explained in Schedule C Due Date.
How This Relationship Affects Completion
Understanding how Schedule C fits into Form 1040 helps explain why the form focuses on calculating business results rather than total tax. A step-by-step walkthrough of completing Schedule C is provided in How to Complete IRS Schedule C.
Related Guidance and Reference
An overview of who must file Schedule C is available in Who Needs to File IRS Schedule C. A general introduction to the form is provided in IRS Schedule C Overview, and the official form and instructions issued by the Internal Revenue Service are available in the reference entry at IRS Form 1040 Schedule C.