Schedule C and Schedule SE, filled in for a delivery driver
By GigWorkerTax · Updated
Schedule C and Schedule SE are the two forms that turn a year of app earnings into tax. They look long, but a delivery driver uses only a handful of lines. This page follows one made-up driver from their forms and mileage log to the finished numbers.
Line numbers follow the current forms, which the IRS has kept the same for several years; check them against the 2026 forms when you file. The amounts come from the same engine as the annual calculator.
The driver's year
- 1099-NEC from the first delivery app: $24,800
- 1099-NEC from a second app: $9,900
- A third app, under the form threshold: $1,450
- Business miles from the log: 7,200 from January to June and 8,300 from July to December
- Parking and tolls while delivering: $96
- Insulated bags and a phone mount: $140
- Phone bill $1,020 for the year, 70% of it for the apps
Single, no children, living in Florida (no state income tax), no other job.
Schedule C: profit from the business
Part I, income
| Line | What goes there | Amount |
|---|---|---|
| 1 | Gross receipts: every form, plus the app with no form | $36,150 |
| 2 | Returns and allowances | $0 |
| 4 | Cost of goods sold (none for delivery) | $0 |
| 7 | Gross income | $36,150 |
The third app paid less than the $2,000 at which a 1099-NEC is required for 2026, so no form came, but its $1,450 still goes in. If an app sends a 1099-K that includes fees it kept, the fees go on line 10; see 1099-K and 1099-NEC.
Part II, expenses
| Line | What goes there | Amount |
|---|---|---|
| 9 | Car and truck: 7,200 × $0.725 + 8,300 × $0.76 = $11,528, plus $96 parking and tolls | $11,624 |
| 22 | Supplies | $140 |
| 27a | Other expenses (listed in Part V): phone, 70% of $1,020 | $714 |
| 28 | Total expenses | $12,478 |
| 31 | Net profit (line 7 minus line 28) | $23,672 |
Gas, repairs and insurance do not appear: with the standard mileage rate they are already inside the $0.725 and $0.76. Whether that or actual costs is better is on the mileage rate or actual expenses page.
Part IV, the car
Because line 9 has a car deduction, Part IV asks for the date the car was first used for the business, the business miles (15,500), commuting miles and other miles, and whether you have written evidence. The log is that evidence; answer "yes" only if you kept one.
Schedule SE: self-employment tax
| Line | What goes there | Amount |
|---|---|---|
| 2 | Net profit from Schedule C line 31 | $23,672 |
| 4a | Line 2 × 92.35% | $21,861 |
| 7 | Social Security wage base for 2026 | $184,500 |
| 10 | Social Security part: 12.4% of line 4a (it is under the wage base) | $2,711 |
| 11 | Medicare part: 2.9% of line 4a | $634 |
| 12 | Self-employment tax | $3,345 |
| 13 | Half of it, deducted on Schedule 1 | $1,673 |
The 92.35% stands in for the employer half: an employee's Social Security and Medicare are charged on pay that excludes the employer's share, so the self-employed are charged on 92.35% of profit. With a W-2 job as well, line 8a takes the wages, which use up the wage base first.
From the schedules to Form 1040
The Schedule C profit of $23,672 goes on Schedule 1 as business income, and the half of self-employment tax, $1,673, comes off on the same schedule. Adjusted gross income is $21,999.
The standard deduction of $16,100 and a qualified business income deduction (Form 8995) of $1,180 leave taxable income of $4,719, and federal income tax of $472.
The self-employment tax from line 12 goes to Schedule 2 and is added on Form 1040. Total federal tax: $3,817, of which most is self-employment tax.
The QBI deduction here is limited to 20% of taxable income before it, not 20% of the profit, because taxable income is the smaller of the two. Estimated payments made during the year are subtracted at the end, and the rest is due by April 15, 2027.
Common variations
- Two different kinds of work, such as delivery and freelance design, each get their own Schedule C. Several delivery and rideshare apps are one kind of work and share one.
- A 1099-K that includes the app's fees: the gross goes on line 1 and the fees on line 10, commissions and fees.
- Actual car costs instead of the mileage rate also go on line 9, with depreciation worked out on Form 4562 and carried to line 13.
- A home office used regularly and only for the business goes on line 30: with the simplified method, $5 a square foot up to $1,500.
- Health insurance you pay for yourself does not go on Schedule C. It comes off on Schedule 1, which lowers income tax but not self-employment tax.
- A loss shows as a negative line 31. There is then no self-employment tax, and the loss generally reduces other income.
What this driver could check
- Every form is in line 1. The IRS matches 1099s to returns; a missing form leads to a notice.
- The mileage is split by date. Using one rate for all 15,500 miles would give a different figure. The mileage deduction calculator does the split.
- Small costs add up. Bags, a phone mount, parking and the phone share came to $950, which saved self-employment tax as well as income tax.
- Next year's payments. With this much tax, the IRS expects quarterly payments next year. The safe harbor guide shows how to size them.
Before you rely on it
This page is general information for the 2026 tax year, not tax advice. GigWorkerTax is an independent site, not connected to the IRS or to any gig platform. Every figure the calculators use and its source is on the methodology page; see also the disclaimer, and talk to a licensed tax professional about your own return.
Sources: Schedule C · Schedule SE · Form 8995 · Publication 463 · IRS Gig Economy Tax Center