Tax Report: Schedule C (Self-Employment Income)

Schedule C is one place self-employment income may show up on a client's tax return.

This table on the Tax Report lists the source of and net profit from any self-employment income, which in this case was the $52,900 that Paula earned as a food blogger. The inclusion of Schedule C income will generate specific observations on the Tax Report, such as a recommendation that your client work with a tax professional (due to the higher complexity). You might also want to check if your client made any contributions to a retirement plan for this type of income, such as a SEP-IRA or a Solo 401(k). In this case, Paula didn't contribute anything, making this a potential planning opportunity for the coming year.