Definition:
Schedule C - Profit or Loss from Business is a report that is part of an individual income tax report on IRS Form 1040. Schedule C shows the income of the business for the tax year and deductible expenses, with the resulting net income/loss (net profit or loss) of the business.
The net profit (loss)from line 31 of the Schedule C is entered into several other personal income tax forms:
- Line 12 of Form 1020, to determine personal income tax liability for any profit or reduction in personal income tax from any loss
- Line 2 of Schedule SE to determine self-employment taxes payable.
