If you:
- Owned a business,
- Are self-employed,
- Performed contract work,
- Provided services for pay not reported on a W-2,
Then you are required to report your income and expenses on Schedule C (Profit or Loss from Business).
What Counts as Self-Employment or Contract Work?
- Freelance or gig work (e.g., rideshare driving, tutoring, design services)
- Independent contractor roles (e.g., consulting, repair services)
- Sole proprietorships or single-member LLCs
- Any work where you received Form 1099-NEC, 1099-K, or were paid in cash/check without tax withholding
Note: W-2 employees do not use Schedule C. Their wages are reported directly on Form 1040.