Schedule C: Meaning for NYC TLC Drivers

Schedule C (Form 1040), "Profit or Loss From Business," is the federal form a self-employed person uses to report income and expenses from a business run as a sole proprietor (IRS). For a TLC driver who files as self-employed, it is where fares, app pay and tips go in, car costs and fees come out, and net profit is what's left. That profit, not your gross fares, is what income tax and self-employment tax are figured on.

The IRS treats an activity as a business if your main purpose is income or profit and you do it "with continuity and regularity."

The lines drivers use most (2025 form)

Sources: 2025 Schedule C instructions, 2025 Schedule C. The 2026 mileage rates are 72.5¢ (January to June) and 76¢ (July to December) (IRS, checked 2026-10-12). See the 2026 mileage rate guide.

Exact figures to know (as of 2026-10-12)

• $400: you must pay self-employment tax and file Schedule SE if your net earnings from self-employment are $400 or more (IRS).
• 15.3%: the self-employment tax rate (12.4% Social Security plus 2.9% Medicare), figured on Schedule SE from Schedule C profit. Schedule SE applies it to 92.35% of net self-employment earnings, and the 12.4% Social Security part stops at the yearly wage base ($176,100 for 2025).
• Five or more vehicles at once: you must use actual expenses on line 9, not the mileage rate.

Where it shows up for drivers

• The forms you get feed it. A Form 1099-K or Form 1099-NEC is a report of income that belongs on line 1. Income with no form belongs there too.
• New York State asks for it. When NYS writes to drivers for proof of income and expenses, the first expense document on its list is "federal Schedule C, Profit or Loss from Business" (NYS Tax).
• It sets your other taxes. Profit on line 31 drives self-employment tax, estimated payments and, for NYC residents, city tax.

Next steps: self-employment tax for TLC drivers, quarterly estimated taxes and the taxes hub. This is general information, not tax advice.