Who Must File Schedule C?
Schedule C is an addendum to Form 1040, which individual taxpayers are required to file annually. Filers use Schedule C to report business income or loss from businesses they operated or owned during the tax year. (Reference 1)
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Business
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The IRS defines a business as an activity you are involved with continuously and regularly, and in which your primary purpose for engaging is for income or profit. Business owners typically must file Schedule C. (Reference 1)
Sole Proprietorship
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A one-owner business that isn't incorporated must file Schedule C with the owner's 1040. If a person is the sole proprietor of more than one business, each business must have its own Schedule C. (Reference 3)
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Income
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One exception involves income. If your business has less than $400 income for the tax year---after calculating expenses---you may not need to file Schedule C. (Reference 2)
Higher Income
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Business owners who report less than $5,000 for the tax year may file a Schedule C-EZ, but those reporting $5,000 or more must file a Schedule C. (Reference 2)
Odd Jobs
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People who pick up the occasional odd job may not think of themselves as running a business. If you sell goods or perform services, keep records: You're likely required to file a Schedule C. (Reference 3)
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References
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