Schedule C
The IRS form where a self-employed person reports business income and expenses to figure net profit.
Freelancers, contractors, gig workers and sole owners of a small business list what they earned and their business expenses on Schedule C, which attaches to Form 1040.
The net profit from Schedule C is used for both income tax and self-employment tax, so every real business expense you record lowers both.
Example
Client payments of $48,000 minus $6,000 of business expenses: $48,000 − $6,000 = $42,000 of net profit.