How do I report self-employment income and expenses?
If you’re self-employed, you’ll report your income and expenses as part of your federal tax return. This is how the Internal Revenue Service (IRS) calculates how much income tax and self-employment tax you owe.
Even if you only did gig work or freelancing as a side hustle, you still need to report it.
What tax forms are used to report self-employment income?
Most self-employed people report their business activity using:
Schedule C (Form 1040) — reports your business income and expenses
Schedule SE (Form 1040) — calculates your self-employment tax
Your Schedule C shows whether your business had a profit or a loss, which then flows into your main tax return.
How do I report my income?
On Schedule C, you’ll report:
All income you earned from self-employment
Payments reported on 1099-NEC, 1099-K, or 1099-MISC
Any income you earned even if you didn’t receive a 1099
You should report the total amount you earned, not just what shows up on tax forms.
How do I report business expenses?
You’ll list your deductible business expenses on Schedule C, which reduces your taxable income.
Common expense categories include:
Supplies and equipment
Mileage or vehicle expenses
Phone and internet expenses (business portion only)
Home office expenses, if you qualify
You should only deduct expenses related to your business, and only the business-use portion counts.
Do I still have to file if I didn’t make much money?
Yes. In many cases, you still need to file if:
You had $400 or more in net self-employment income, or
You’re required to file a tax return for other reasons
Even small amounts of self-employment income can affect your taxes.
What records should I keep?
You should keep records that support what you report, such as:
Income summaries or invoices
Receipts for business expenses
Mileage logs
Bank or payment app statements
Good records make filing easier and help if the IRS ever asks questions.
Key takeaway
If you’re self-employed, you’ll report your income and expenses on Schedule C as part of your tax return. Reporting everything accurately helps you calculate the right tax and avoid issues later.
This content is provided for informational purposes only and should not be construed as tax, legal, financial, accounting, or other advice. Rules and regulations vary by location and are subject to change, so please consult with an expert if you need advice specific to you.
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