Table of Contents
Definition
Schedule C (Form 1040) is the IRS form used by sole proprietors and single-member LLCs to report profit or loss from a business. It allows you to itemize business income and expenses on your individual tax return, calculating your net self-employment earnings subject to income and self-employment taxes.
Who Should File
Self-Employed Individuals: Freelancers, independent contractors, gig workers
Single-Member LLCs: Entities taxed as disregarded for federal income tax
Sole Proprietors: Anyone operating an unincorporated business or trade
If you earned net profit from these activities, you must file Schedule C with your Form 1040.
Common Deductible Expenses
Vehicle & Mileage: Business miles driven for client visits, deliveries, etc.
Home Office: Portion of rent, utilities, and internet used exclusively for business
Supplies & Equipment: Office supplies, tools, software subscriptions
Meals & Entertainment: 50% deduction for business meals with clients
Insurance & Licenses: Business insurance premiums and professional licenses
Advertising & Marketing: Website hosting, ads, trade-show fees
When to File
File Schedule C annually with your Form 1040 by the tax deadline. If you expect to owe more than $1,000 in self-employment tax, make estimated quarterly payments to avoid penalties.
How MileageWise Helps
Accurate Mileage Tracking: Log every business trip automatically via GPS or telematics.
Category Tags: Separate business from personal trips automatically.
Audit-Ready Reports: Export CSV/PDF reports showing date, route, miles, and purpose—perfect for Schedule C support.
Multi-Vehicle Support: Track mileage for multiple business vehicles in one account.
FAQ
You can deduct either the actual costs (fuel, maintenance, insurance) or the standard mileage rate for each business mile driven. Keep detailed logs to substantiate your choice.
Yes, only miles driven for business purposes (client meetings, deliveries, site visits) are deductible. MileageWise lets you classify and filter trips so you capture only the deductible portion.
No, commuting from your home to your regular place of business is considered personal travel and is non-deductible.
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