How many Schedule C's do I need for multiple side hustles in 2025?

You'll need to file a separate Schedule C for each distinct business activity. Based on what you've described, you should prepare three different Schedule C forms - one for your jewelry business, one for food delivery, and one for photography. Each business is considered a separate activity with its own profit/loss calculation. The IRS wants to see the income and expenses for each business separately so they can properly evaluate each venture. This is especially important when one business shows a profit while another shows a loss. And yes, you can absolutely deduct the losses from your photography business against your other income as long as you can demonstrate that it's a legitimate business activity and not just a hobby. The key factor is whether you're running it with the intention of making a profit, even if you haven't achieved profitability yet.

After struggling with multiple side hustles myself last year, I found an incredible tool called taxr.ai (https://taxr.ai) that saved me so much time and confusion with my Schedule C forms. I was in almost the exact same boat as you - had an Etsy shop, did some gig delivery work, and had a small consulting business on the side. The tool analyzed my income sources and automatically determined how I needed to organize my Schedule C forms. It also identified deductions I would have completely missed for each business. The best part was it explained WHY I needed separate forms and walked me through the whole process.

I was skeptical about using yet another tax tool, but after reading about taxr.ai here, I decided to give it a try with my multiple side hustles. Honestly, it was a game-changer! The system immediately identified that my Etsy store and consulting work needed separate Schedule Cs, but suggested combining two smaller related businesses. What impressed me most was how it caught several deductions specific to my Etsy business that I had completely missed - particularly some home office expenses and packaging materials I didn't realize were fully deductible. It saved me over $1,200 in taxes I would have overpaid! The business vs. hobby analysis also gave me confidence that my smaller business would pass IRS scrutiny even though it's not profitable yet.

If you're having trouble getting answers from the IRS about your Schedule C questions (I know I did), I highly recommend trying Claimyr (https://claimyr.com). I spent DAYS trying to get through to an IRS agent about some specific questions on handling my multiple business expenses. After getting nowhere with endless hold times, I used Claimyr and got connected to an actual IRS representative in about 15 minutes! They have this smart system that navigates the IRS phone tree and holds your place in line, then calls you when an agent picks up. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with gave me specific guidance on my Schedule C situation that I couldn't find anywhere online. Totally worth it for the peace of mind knowing I was filing correctly.

Ok I take back what I said about Claimyr. After waiting on hold with the IRS for 2.5 hours yesterday and then getting disconnected, I was desperate enough to try it. Not gonna lie, I was shocked when I got a call back about 45 minutes later connecting me to an actual IRS person. The agent confirmed I needed separate Schedule Cs for each business but gave me some really specific advice about my situation with losses in one business. She explained exactly what documentation I should keep to support my claim that it's a legitimate business and not a hobby. She even emailed me some IRS resources specifically about the hobby loss rules that I hadn't found on my own. Saved myself hours of frustration and got better answers than I found in hours of Googling. Won't hesitate to use it again next time I have tax questions.

I made the mistake of combining all my side gigs on one Schedule C last year and got a letter from the IRS asking for clarification. Had to resubmit with separate Schedule Cs. Don't make my mistake!! Also, for your photography business, make sure you're keeping really good records of your marketing efforts, business plan, and steps you're taking to make it profitable. The IRS looks at 9 factors to determine if something is a business vs hobby, and showing your intent to make a profit is super important when you're reporting losses.

Quick tip: Make sure you're tracking mileage for both your food delivery and photography businesses! I do gig work too and mileage is my biggest deduction. Standard mileage rate for 2024 is 67 cents per mile which adds up fast. Use an app to track it all year.

The photography business loss might raise some red flags since the expenses are much higher than the income. Make sure you can prove you're trying to make a profit. Take classes to improve skills, have a business plan showing projected path to profitability, advertise your services, maintain separate business accounts, etc. I've been running a photography business for years and had losses the first two years. As long as you treat it like a serious business and not a hobby, you should be fine claiming the losses.

Great question! Yes, you'll definitely need separate Schedule C forms for each business. The IRS considers these distinct activities - your jewelry business, delivery work, and photography are all different types of operations with different income streams and expense categories. For your photography business showing a loss, you can absolutely deduct those losses against your other income as long as you're operating it as a legitimate business (not a hobby). The key is demonstrating profit motive - keep records of your business plan, marketing efforts, time invested, and steps you're taking to improve profitability. One thing to watch out for: with $19k in equipment expenses against $6.8k income, make sure you're properly depreciating larger equipment purchases rather than deducting them all in one year. Camera gear, lighting equipment, etc. typically need to be depreciated over several years unless you elect Section 179 or bonus depreciation. Also consider whether some of those equipment purchases might qualify for the Section 179 deduction, which could let you deduct up to $1,160,000 in qualifying business equipment in the year you placed it in service (for 2024). This could be beneficial for your photography business if the equipment qualifies.