Real-world examples of Schedule C for sole proprietors

Starting with real examples of Schedule C for sole proprietors

Let’s skip the theory and go straight into real examples. Once you see how different businesses use Schedule C, the form stops being mysterious and starts looking like a structured story of your year: what you earned, what you spent, and what’s left as profit.

Below are several examples of examples of Schedule C for sole proprietors in 2024–2025. Each one focuses on how income is reported, which expense categories are used, and the kinds of records that back everything up.

Example of a rideshare & delivery driver’s Schedule C

Think of someone driving for Uber, Lyft, DoorDash, and Instacart. This is one of the best examples of Schedule C for sole proprietors in today’s app economy.

Income story
The driver receives multiple 1099s from different platforms. For 2024, imagine:

• $32,000 from Uber (reported on Form 1099-K)
• $8,000 from DoorDash (1099-NEC)
• $2,000 in cash tips not reported on any form

On Schedule C, all of that gets added together and reported as gross receipts. The IRS doesn’t care how many apps you used; it just wants the total.

Expense categories that matter here
The big question for this driver is the car. They can either use:

• The standard mileage rate (for 2024, see the current rate on the IRS site: https://www.irs.gov/tax-professionals/standard-mileage-rates), or
• Actual expenses (gas, repairs, insurance, depreciation, etc.)

Let’s say they drove 20,000 business miles in 2024 and use the standard mileage rate. That entire mileage deduction goes on Part II, line 9 (Car and truck expenses).

Other common expenses:

• Tolls and parking
• Cell phone (business portion only)
• Car washes related to the business
• Snacks and water for passengers (as supplies)

This is one of the clearest examples of examples of Schedule C for sole proprietors because it shows how a single person with multiple income streams still files one Schedule C per business.

Example of a freelance graphic designer’s Schedule C

Now picture a self-employed designer who works from a home office and serves clients worldwide.

Income story
The designer receives:

• $40,000 via PayPal and Stripe (some reported on 1099-K)
• $10,000 directly from clients via bank transfer

Even if they don’t receive a 1099 for every client, all income still belongs on Schedule C. The designer totals everything and reports it as gross receipts.

Typical expense lines
This is where Schedule C can work in their favor. Expenses might include:

• Design software subscriptions (Part II, line 18 – Office expenses or line 27a – Other)
• Online portfolio hosting and domain fees (Advertising or Other)
• Laptop and monitor (may be depreciated in Part IV or taken as Section 179)
• Home office deduction (calculated on Form 8829 and carried to Schedule C, line 30)
• Education and training (courses, books, maybe conferences – often line 27a Other)

In this example of Schedule C for a sole proprietor, the story is about digital tools, home office, and professional development. It’s a great model if you’re in any creative or online service business.

Example of an Etsy or online shop owner’s Schedule C

An Etsy seller or small Shopify store owner is another of the best examples of Schedule C for sole proprietors, because it showcases both income and cost of goods sold (COGS).

Income story
Suppose an Etsy seller brings in \(75,000 in gross sales in 2024, reported partly on Form 1099-K. They also sell a few items locally for \)5,000 in cash. Total gross receipts: $80,000.

Cost of goods sold
This seller buys materials and holds inventory. They’ll fill out Part III – Cost of Goods Sold, including:

• Beginning inventory
• Purchases of materials
• Ending inventory

Let’s say they spent \(30,000 on materials and had \)5,000 of unsold inventory at year-end. That calculation leads to COGS of $25,000. That number flows to line 4 on Schedule C.

Other common expenses include:

• Etsy marketplace fees and payment processing fees (often line 10 – Commissions and fees)
• Shipping and packaging
• Product photography (Advertising or Other)
• Internet and part of cell phone used for the business

Among all examples of examples of Schedule C for sole proprietors, online sellers highlight the importance of tracking inventory and separating personal purchases from business materials.

Example of a consultant or coach’s Schedule C

Take a business consultant or life coach who operates as a sole proprietor, no employees, mostly remote.

Income story
They earn:

• $90,000 in consulting fees, mostly via bank transfers
• $10,000 from online group programs via a platform that issues a 1099-K

All of this is reported as gross receipts. They may also have to watch for estimated tax payments during the year, since there’s no withholding.

Expense profile
This example of Schedule C for a sole proprietor highlights professional and marketing expenses:

• Zoom, Calendly, CRM software (Office or Other expenses)
• Online ads (Advertising, line 8)
• Travel to client sites or conferences (Travel, line 24a; Meals, line 24b, subject to current IRS rules)
• Professional liability insurance (Insurance – other than health, line 15)
• Legal and accounting fees (line 17)

For many service professionals, these examples include one more key deduction: self-employed health insurance, which isn’t taken on Schedule C but on Form 1040, yet still ties into the overall “self-employed” tax picture.

Example of a home-based daycare provider’s Schedule C

Home daycare providers are one of the more nuanced examples of Schedule C for sole proprietors because they blend personal and business use of the same home.

Income story
A provider earns $45,000 from parents, some of whom may receive government assistance programs that pay the provider directly.

Expense breakdown
Expenses might include:

• Food and snacks for children
• Toys, books, and educational materials
• Cleaning supplies
• Liability insurance
• Part of rent, utilities, and home maintenance

Because the home is used for both personal and business purposes, the provider may use special IRS guidance for daycare facilities to calculate the business-use percentage of the home. That amount is reported as business use of home on Schedule C (via Form 8829).

This is one of the best examples of examples of Schedule C for sole proprietors where time and space calculations matter a lot.

Example of a handyman or tradesperson’s Schedule C

Now think about a self-employed handyman, electrician, or plumber who is not incorporated.

Income story
They earn $110,000 from a mix of:

• Checks from homeowners
• Electronic payments via apps like Zelle or Venmo (business profile)
• Some 1099-NEC forms from property managers

They total everything for gross receipts, regardless of whether a 1099 was issued.

Expense patterns
Their examples include heavy use of:

• Tools and equipment (may be expensed or depreciated)
• Truck expenses (mileage or actual costs)
• Supplies and small materials
• Work clothes that qualify as protective gear (not regular clothes)
• Business insurance and licenses

For tradespeople, a good example of Schedule C shows how large equipment purchases may be handled over several years through depreciation, rather than all at once.

How these real examples tie into 2024–2025 tax trends

These examples of examples of Schedule C for sole proprietors are not happening in a vacuum. A few 2024–2025 trends affect nearly all of them:

More 1099-K reporting for payment apps
IRS rules around Form 1099-K for third-party networks (PayPal, Venmo, Cash App, Etsy, etc.) have been in flux. The IRS has delayed full implementation of a lower $600 threshold, but it continues to move in that direction. You can track current thresholds directly at the IRS: https://www.irs.gov/forms-pubs/about-form-1099-k.

In practice, that means more people with side hustles will receive 1099-Ks, which will show up in many examples of Schedule C for sole proprietors.

Gig work is normal now
The rideshare and delivery driver example isn’t fringe anymore; it’s mainstream. The IRS even has a dedicated gig economy page with guidance: https://www.irs.gov/businesses/gig-economy-tax-center.

Digital tools and subscriptions everywhere
Whether you’re a designer, coach, or shop owner, software and online platforms are now standard business expenses. These examples include recurring subscriptions that can add up to a meaningful deduction if tracked properly.

Common patterns across the best examples of Schedule C for sole proprietors

When you zoom out, all of these examples of examples of Schedule C for sole proprietors share a few patterns.

One person, one business activity per Schedule C
If you run multiple unrelated businesses (say, rideshare driving and a separate Etsy shop), the IRS generally expects a separate Schedule C for each distinct business. Each form tells the story of that specific activity.

Gross receipts first, then subtract expenses
Every example of Schedule C starts with total business income on line 1, then subtracts returns and allowances (if any), then subtracts cost of goods sold (if applicable), and finally subtracts operating expenses in Part II.

Net profit or loss flows to Form 1040
The bottom line from Schedule C (line 31) moves to your Form 1040 and also feeds into the calculation for self-employment tax on Schedule SE. That’s the additional tax you pay in place of Social Security and Medicare withholding an employee would normally have.

Documentation makes or breaks the deductions
In every one of these real examples, records matter:

• Mileage logs for drivers and tradespeople
• Invoices and bank records for consultants and designers
• Inventory and purchase records for sellers
• Time-use and space-use records for home-based businesses

The IRS explains recordkeeping expectations for small businesses here: https://www.irs.gov/businesses/small-businesses-self-employed/recordkeeping.

FAQ: examples of Schedule C questions people actually ask

What are some common examples of Schedule C expenses I might be missing?
Many sole proprietors overlook smaller recurring items: software subscriptions, professional memberships, small tools, and a portion of internet or phone used for business. In several of the examples of Schedule C above, those “little” items become a meaningful reduction in taxable income when added up.

Can you give an example of when I need more than one Schedule C?
If you drive for Uber and also run a separate Etsy shop with its own branding and products, those are generally treated as two different businesses. You’d file one Schedule C as an example of your rideshare business and another example of your retail business, each with its own income and expenses.

Do I need a Schedule C if I only made a few hundred dollars?
Yes, if it’s self-employment income and you’re operating as a sole proprietor, you typically still report it on Schedule C, even if it’s small. Many real examples include side gigs that start tiny but grow over time. Once your net earnings from self-employment hit $400 or more, you usually owe self-employment tax as well.

Are these examples of Schedule C only for U.S. taxpayers?
Schedule C is a U.S. federal tax form. Non‑U.S. freelancers and small business owners may file different forms in their own countries. But the basic idea—reporting business income and subtracting business expenses—is similar worldwide.

Where can I see an official IRS example of Schedule C?
The IRS provides the form and instructions, including line-by-line explanations and sample scenarios, on its site: https://www.irs.gov/forms-pubs/about-schedule-c-form-1040. While they’re not as colorful as the real-world stories above, they’re the official reference.

If you recognize your work life in any of these examples of examples of Schedule C for sole proprietors, that’s the point. Use the scenario closest to your situation as a template, then adjust the details to match your own numbers, your own tools, and your own records. The form is standardized, but the story it tells is yours.