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Schedule C is used to report income and expenses from a business you own as a sole proprietor or single-member LLC. If you are self-employed or receive 1099-NEC Forms, youll likely need to use Schedule C to report income and expenses for your trade or business.
Self-Employment Taxes The net income information on Schedule C is used to determine the amount of self-employment tax you owe for Social Security and Medicare taxes. Schedule SE is used to calculate the self-employment tax amount.
Specifically, self-employed taxpayers may need to fill out Part II, Line 4 of Schedule 2 if they owe self-employment tax. This tax is the total owed for Social Security and Medicare taxes and is calculated on Schedule SE, which should also be completed and attached.
Schedule SE Essentials: Used by self-employed individuals to calculate Social Security and Medicare taxes; mandatory if net earnings exceed $400. Self-Employment Tax Breakdown: Comprises 12.4% for Social Security and 2.9% for Medicare, totaling a 15.3% tax rate.
Who files a Schedule C tax form? Youll need to file a Schedule C if you earn income through self-employment as a sole proprietor or as a single-member Limited Liability Company (LLC). You wouldnt use a Schedule C to report business income and expenses of a C Corporation or S corporation.

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