Self-employed individuals report their income and expenses on which schedule?

Self-employed individuals report their income and expenses using Schedule C. This schedule is specifically designed for sole proprietors to detail their business income and deductible business expenses, allowing them to calculate their net profit or loss from the business. Schedule C is an integral part of Form 1040, the individual income tax return, and provides a comprehensive overview of self-employment earnings.

Other schedules serve different purposes. For example, Schedule D is used for reporting capital gains and losses, while Schedule 1 includes additional income and adjustments to income unrelated to self-employment. Schedule E is primarily used for reporting income or loss from rental real estate, royalties, partnerships, S corporations, or trusts. By using Schedule C, self-employed individuals can ensure that they accurately capture their business financials for tax reporting.