What's the Difference Between Schedule C and Schedule E?

Schedule C and Schedule E are both IRS forms used to report income from activities outside of a regular job, but they apply to different types of income. Schedule C is used to report income and expenses from self-employment — if you run a freelance business, own a sole proprietorship, or drive for a rideshare app, your business income goes on Schedule C. Schedule E is used to report supplemental income from rental properties, partnerships, S corporations, trusts, and estates. A key difference is that Schedule C income is subject to self-employment tax (about 15.3% on the first $168,600 in 2024), while most Schedule E income is not. Using the wrong form can affect both your tax bill and whether you owe self-employment taxes, so it's worth knowing which one applies to your situation.