The reason is that certain write-offs are only available to certain industries, so if you mix together your different ventures on a single schedule C, it’s much more likely that your return will get flagged and audited. For instance, if you DJ on the weekends and sell custom t-shirts on Etsy, those should be reported separately. How many schedule C forms do you need?Īs a general rule, you should use one Schedule C for every business activity you’re involved in. In a nutshell, if your income isn’t reported on a W-2, you don’t have a business partner, and your business isn’t incorporated (or treated as a corporation for tax purposes), the Schedule C is for you. If you would describe yourself as one of the following, you should be using a Schedule C: Those are the work-related expenses you incurred during the year, like supplies, software costs, your cell phone bill, and more. Schedule C is also where you report your business write-offs. This could be income from your small business, freelance work, or just extra cash earned through a side hustle. “Self-employment income” is how we describe all earned income derived from non-W-2 sources.

Schedule C is used to report self-employment income on a personal return.

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