Tax season is a simple routine for many with a W-2, but for freelancers and small business owners, it involves understanding Schedule C to report income and expenses accurately to the IRS.

Schedule C is attached to Form 1040 and determines your business profit, which affects your self-employment tax and overall tax bill.

Deductions like advertising, office expenses, and travel costs can lower your taxable profit, helping offset the burden of self-employment taxes.

If you run a business or side hustle, you likely need to file Schedule C if your net earnings exceed $400, including gig workers like rideshare drivers.

Filling out Schedule C involves gathering records, calculating income, expenses, and net profit, and transferring the total to Form 1040 for tax purposes.

Tax preparation software or a human tax pro can help guide you through Schedule C filing, ensuring accuracy and optimized deductions to minimize your tax bill.

A single-member LLC typically files a Schedule C, reporting income and expenses on personal tax returns instead of separate business returns.

Regular employees with W-2s can’t deduct business expenses on personal returns and should not use Schedule C, while partnerships file Form 1065 instead.

Receiving a 1099 from clients shows income, while filing Schedule C reports that income and expenses to the IRS, consolidating multiple 1099s into one form.

Read more at Yahoo Finance: What is a Schedule C IRS form?