Which form do self-employed individuals typically use to report income?

Self-employed individuals typically use Schedule C (Form 1040) to report their income. Schedule C is specifically designed for sole proprietors and self-employed individuals to detail their business income and expenses. This form allows them to calculate their net profit or loss from their business activities, which then flows into their individual income tax return, Form 1040.

Using Schedule C, self-employed individuals can report various types of income, such as sales, service income, and other business-related earnings, as well as deduct legitimate business expenses, effectively reducing their taxable income. This form is essential because it provides a comprehensive picture of a self-employed person's financial activity for the year.

In contrast, Form 1040-SR is generally used by seniors for individual income tax filing but does not focus specifically on self-employment income. Form 1099-MISC is used by payers to report payments made to independent contractors but is not the form that self-employed individuals use to report their income. Lastly, while state tax forms are relevant for reporting income at the state level, they do not serve as a comprehensive means of reporting self-employment income for federal tax purposes.