What type of income can be reported using Schedule C?

Schedule C is specifically designed for reporting income earned from self-employment. This includes various forms of business income, such as profits from a sole proprietorship, freelance work, or any other form of earnings that are derived from operating a business. Self-employed individuals utilize Schedule C to detail their income, as well as their deductible expenses, ultimately determining their net profit or loss from the business operation.

In this context, the other options do not apply to Schedule C. Rental income is typically reported on Schedule E, wages from a job are reported on Form 1040 and are subject to income tax withholding by the employer, while interest income from savings is also reported directly on Form 1040. Therefore, Schedule C is uniquely tailored for self-employed individuals to provide an accurate account of their business income.