Sole proprietor taxes, simplified.
Here's everything you need to file your sole proprietor taxes right the first time.
Get StartedSole proprietor taxes, simplified.
Here's everything you need to file your sole proprietor taxes right the first time.
Get Started
What it means to file as a sole proprietor
If you run your business by yourself and haven't formed a separate business entity, the IRS treats you as a sole proprietor for tax purposes.
For tax purposes, you and your business are the same entity. This means your business income and expenses are reported directly on your personal tax return (Form 1040) using Schedule C.
One Simple Tax Return
You don’t file a separate business tax return. Your business income is reported as part of your personal tax return.
Taxes on Your Business Income
You’ll pay regular income tax and self-employment tax on the profit your business earns during the year.
Write Off Business Expenses
You can deduct eligible business expenses to reduce your taxable income and lower what you owe.
Key tax forms for sole proprietors
All due April 15th, or October 15th with extension filed
Reports your business income and expenses
Stay on top of key due dates
Your main individual income tax return
What you need
Have these records ready before you file. They help you total your income and expenses to accurately complete your Schedule C.
Download Free P&L Template
Common deductions
Save money by claiming the expenses that apply to your business. Typical deductions include:
Startup costs (if this is your first year)
Advertising and website costs
Home office expenses
Office supplies and equipment
Business insurance
Vehicle or mileage expenses
Software subscriptions and professional tools
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Start filing with confidence
Total Your Income and Expenses
Use your profit and loss statement or bookkeeping records to add up what your business earned and spent.
Enter Your Business Details
Add your sole proprietor information into TaxAct and let us guide you through each section.
Claim Every Deduction You Qualify For
Review your expenses and deductions to make sure you’re not leaving money on the table.
Preview Your Tax Results
See what you owe — or how your business income affects your personal tax return — before you file.
File with Confidence
E-file securely and choose direct deposit for refunds or convenient payment options if you owe.
