July 1, 2025
For the millions of Americans who operate as freelancers, independent contractors, and small business owners, understanding the landscape of federal taxation is not merely a matter of compliance, but a cornerstone of financial strategy and long-term viability. Central to this landscape is the Internal Revenue Service (IRS) Schedule C (Form 1040), Profit or Loss from Business.
The core function of Schedule C is to systematically report the income and expenses of a business operated as a sole proprietorship. The form guides the taxpayer through a calculation that culminates in a single, critical figure: the business's net profit or loss for the tax year.
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