# Schedule C

> The IRS form where self-employed people report business profit or loss. Line 9 is the mileage line — and it's the line that pays for ELM.

Category: self-employment-and-taxes
Updated: 2026-05-26
Canonical: https://everylastmile.app/glossary/schedule-c

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**Schedule C (Form 1040), Profit or Loss From Business (Sole Proprietorship)** is the IRS form where a sole proprietor, single-member LLC (by default), or independent contractor reports gross income, deducts business expenses, and arrives at a net profit or loss.

**Who files it.** Anyone with self-employment income: rideshare drivers, delivery drivers, freelancers, consultants, Etsy sellers, dog-walkers, photographers, real-estate agents reporting commissions, and the ~11.9 million workers the Bureau of Labor Statistics identified as independent contractors on their primary job (BLS Contingent Worker Supplement, USDL-24-2267, November 8, 2024) — plus the tens of millions of part-time gig workers GigEconomyData.org counts when supplemental earners are included. A single-member LLC files Schedule C unless it has elected to be taxed as an S corporation or C corporation.

**Where the money flows.** The net profit on Schedule C line 31 does two things:

1. It flows to **Schedule 1, line 3**, which feeds Form 1040 line 8 — your gross income.
2. It also flows to **Schedule SE**, which computes the 15.3% self-employment tax under IRC §1401. (See [Self-Employment Tax](/glossary/self-employment-tax).)

A net loss generally offsets other income (with limits under IRC §461(l) for excess business losses).

**The big line for ELM readers: Line 9, Car and truck expenses.** This is where the mileage deduction goes. You may put either the standard-mileage figure (business miles × the IRS rate) or the business-use portion of actual vehicle expenses on this line — but not both for the same vehicle in the same year. Behind line 9, **Part IV of Schedule C** asks for the date the vehicle was placed in service, business miles, commuting miles, other miles, and whether the vehicle was available for personal use. Fill it in honestly; the question about a written log is not rhetorical.

**Worked example.** Tomas drives for Uber and Instacart in 2026 and earns $48,000 gross. He drove 32,000 business miles in the first half of the year (Jan 1–Jun 30), all at the 72.5¢ rate; miles driven from July 1 on are figured at 76¢ after the mid-year increase. His Schedule C:

- Line 1 (gross receipts): $48,000
- Line 9 (car/truck, 32,000 × $0.725): **$23,200**
- Line 22 (supplies — phone mount, hot bag): $180
- Line 25 (utilities — business portion of phone): $480
- **Line 31 net profit: $24,140**

That $24,140 flows to Schedule SE for the 15.3% calculation and to Form 1040 for income tax.