Schedule C
Step by Step
Profit or Loss from Business

A complete, line-by-line course for tax preparers serving gig workers, telehealth professionals, rideshare drivers, and every modern sole proprietor.

Uses one client example from the first lesson through the final walkthrough.

Why this matters right now: 

More than 27 million Americans filed a Schedule C in the most recent filing year — and that number grows every year as gig platforms, telehealth networks, and freelance marketplaces expand. First-year rideshare drivers, telehealth nurses, and Etsy sellers are showing up at tax offices every day not knowing whether they need a Schedule C, a Form 1065, or a Form 1120-S. This course gives practitioners the complete, step-by-step knowledge to answer that question and prepare every line of the form correctly.

Key figures covered in this course
Critical Schedule C numbers every preparer must know

$400

SE tax threshold — net earnings that trigger Schedule SE obligation

15.3%

Self-employment tax rate on the first $168,600 of net SE earnings

$5/sq. ft

Simplified home office method — maximum 300 sq ft ($1,500 max)

50%

Business meal deduction limit — entertainment is $0 after TCJA

20%

QBI deduction under §199A — available to Schedule C net income

92.35%

SE tax factor applied to net profit before computing SE tax base

One client. Every lesson.

Client Facts
Schedule C Case Study Inputs
Telehealth
1099-NEC
$38,000
Uber
1099-K
$18,400
W-2
Wages
$68,000
Home Office
150 sq ft
Business
Miles
6,200
Schedule C
Forms
Two
What You Will Master

Core Competencies Covered in This Course

Determine whether a client files Schedule C, Form 1065 (Partnership), or Form 1120-S — and explain the answer clearly during the first client appointment.
Complete Lines A through J of Schedule C, including selecting the correct NAICS activity code for telehealth providers, rideshare drivers, and freelance businesses.
Report 1099-K gross receipts correctly, including platform fee deductions that prevent CP2000 mismatch notices.
Apply every Part II expense category, including the §179 election, 50% meal limitation, and the home office regular versus simplified method comparison.
Calculate the standard mileage versus actual expense vehicle deduction and complete Part IV for rideshare drivers using a compliant mileage log.
Compute self-employment tax on Schedule SE, establish quarterly estimated payments, and identify taxpayers subject to underpayment penalties.
Apply the home office deduction rules, including exclusive-use requirements, documentation standards, and deduction limitations.
Identify common Schedule C audit triggers, documentation requirements, and practitioner best practices that reduce examination risk.