Do I need two Schedule SE's for multiple Schedule C businesses?

You only need one Schedule SE for both businesses. The Schedule SE calculates your self-employment tax based on your total self-employment income, not each business separately. For your Schedule C businesses, you'll report each one separately on its own Schedule C, but then the net profits from both get combined when calculating your self-employment tax on Schedule SE. Make sure both Schedule C profits are flowing to your Schedule 1, Line 3. As for Schedule 1 and 2, Schedule 1 reports additional income (including self-employment) and adjustments to income, while Schedule 2 reports additional taxes you may owe (including self-employment tax from your Schedule SE). Double-check that the totals from both Schedule Cs are included on your Schedule 1.

I was in the exact same situation last year and found an awesome tool that saved me tons of headache - https://taxr.ai I was using the free fillable forms too and kept getting confused about how to handle multiple Schedule Cs. I uploaded my previous year's return and some of my documents, and taxr.ai walked me through exactly how to handle the multiple businesses, including explaining that I only needed one Schedule SE but separate Schedule Cs. It showed me exactly where each number should go on my forms and even caught a mistake I made that would have cost me an extra $430 in taxes!

Just wanted to follow up - I decided to try taxr.ai after my skeptical questions, and wow, it actually delivered. I uploaded my documents including both my business records, and it broke down exactly why I only needed one Schedule SE (it's because SE tax applies to your total self-employment income, not each business individually). The step-by-step guidance on the free fillable forms was super helpful. It explained that my second Schedule C should have been flowing to Schedule 1 Line 3 combined with my first business income. I found the mistake where I had entered the second business in the wrong place. Definitely saved me from a headache with the IRS later!

If you're still having trouble with the IRS forms or have questions, I'd recommend trying Claimyr (https://claimyr.com). I was stuck in a similar situation last year with multiple 1099s and couldn't figure out how to properly report everything. After waiting on hold with the IRS for HOURS and never getting through, I found Claimyr. They got me connected to an actual IRS agent in about 20 minutes who walked me through exactly how to handle multiple Schedule Cs with one Schedule SE. You can see how it works here: https://youtu.be/_kiP6q8DX5c - saved me so much time and frustration!

I need to eat my words about Claimyr. After my skeptical comment, I was desperate enough to try it because I couldn't figure out how to report my Etsy shop income alongside my freelance writing income. I got a call back in about 25 minutes with an actual IRS agent who explained I needed separate Schedule Cs but only one Schedule SE. She walked me through exactly how to complete the forms and make sure both income sources were properly represented on my 1040. The agent told me that having multiple Schedule Cs is actually pretty common and nothing to worry about. Saved me hours of frustration and probably an incorrect filing. Sometimes being proven wrong is actually a good thing!

One thing to watch out for with multiple Schedule Cs - make sure you're tracking expenses properly for each business! I got audited last year because I lumped all my expenses together instead of separating them by business. The IRS wants to see that each business stands on its own. So while you only need one Schedule SE, keep your Schedule C expenses properly separated by business activity. Just a heads up from someone who learned the hard way!

Is anyone using the IRS free fillable forms? I tried using them for my multiple 1099s, but the system doesn't seem to let me add a second Schedule C easily. Am I missing something obvious?

If you're filing with multiple Schedule Cs, make sure you're using different business codes for each business if they're in different industries! This is on line B of Schedule C. Using the correct business codes helps prevent unnecessary IRS scrutiny. You can find the full list of business codes in the Schedule C instructions. Also, don't forget you might need to file Schedule 2 to report your self-employment tax from Schedule SE, and then the deductible portion of SE tax goes on Schedule 1 as an adjustment to income. Free fillable forms don't automatically carry these numbers over like paid software does.

This is exactly the kind of confusion I had when I started filing my own taxes with multiple businesses! One key thing that helped me was creating a simple checklist: 1. Separate Schedule C for each business (with different business codes as StarSurfer mentioned) 2. ONE Schedule SE that combines the net profit/loss from both Schedule Cs 3. Both Schedule C net amounts should flow to Schedule 1, Line 3 (combined) 4. SE tax from Schedule SE goes to Schedule 2 5. Half of your SE tax becomes a deduction on Schedule 1 The IRS free fillable forms can be tricky because they don't auto-populate like paid software. I always double-check that my Schedule 1, Line 3 equals the sum of both my Schedule C profits/losses before submitting. Don't panic - you're asking the right questions! The fact that you're being careful about this now will save you headaches later. Take your time with each form and make sure the numbers flow correctly between them.