Schedule C Filing for Expats and Digital Nomads
Schedule C is the IRS form for reporting self-employment income and business expenses. For US expats and digital nomads running their own business or freelancing, Schedule C is the foundation of the return — feeding into FEIE calculations, self-employment tax, and FBAR obligations. Getting Schedule C right (maximising deductions, correctly categorising income) directly reduces your overall tax burden.
Get started with your filingWho this is for
- ✓ Self-employed US expats and digital nomads filing Schedule C
- ✓ Freelancers with sole proprietorships or single-member LLCs abroad
- ✓ US expat business owners without a formal entity structure
- ✓ Those with contractor, consulting, or creative income reported on 1099s or foreign invoices
- ✓ Anyone whose foreign-earned self-employment income qualifies for FEIE
What this filing may involve
Every situation is different. The forms below commonly apply — your specific filing may vary.
- 1 Schedule C — Profit or Loss from Business (sole proprietorship)
- 2 Schedule SE — Self-Employment Tax (15.3% on net Schedule C profit, not eliminated by FEIE)
- 3 Form 2555 — FEIE election on qualifying foreign-earned Schedule C income
- 4 FinCEN Form 114 (FBAR) — for business and personal foreign accounts
- 5 Form 4562 — Depreciation of business equipment or assets
Documents usually needed
- 📄 Complete income records — all invoices, payments received by date and currency
- 📄 Business expense receipts or records by category
- 📄 Business bank account statements
- 📄 Records of any home office use, vehicle use for business, or travel for business
- 📄 Prior year Schedule C
How Nomadic.Tax works
AI-assisted preparation with licensed professional review — every time.
We prepare Schedule C with all qualifying deductions — office expenses, software, equipment, travel, professional services
Net profit flows into FEIE calculation to determine excludable income
SE tax is calculated on net profit after deducting half the SE tax
A licensed CPA reviews every deduction for compliance before filing
When human review matters
- ⓘ FEIE applies only to earned income — it does not exclude passive income like dividends, rental income, or capital gains
- ⓘ SE tax of 15.3% applies even when FEIE eliminates all income tax on the same earnings
- ⓘ Home office deduction requires the space to be used regularly and exclusively for business
Relevant plans
Choose the package that best fits your situation, or view all plans.
- ✓ Everything in Standard
- ✓ Schedule C & SE for self-employment
- ✓ Multiple income sources and currencies
- ✓ Everything in Premier
- ✓ Foreign Earned Income Exclusion (Form 2555)
- ✓ Foreign Tax Credit (Form 1116)
- ✓ FBAR filing (FinCEN 114) included
Frequently asked questions about Schedule C Filing for Expats and Digital Nomads
Can I deduct my coworking membership on Schedule C?
Yes, coworking space rental is a direct business expense deductible on Schedule C if you use it for business. This applies whether you're in the US or abroad.
Do I need to have a formal LLC to file Schedule C?
No. Schedule C is for sole proprietors, which includes anyone running a business without a formal entity. A single-member LLC is also typically reported on Schedule C (as a disregarded entity). Multi-member LLCs file a separate Form 1065.
What is the home office deduction for expats?
If you use a dedicated area of your home exclusively and regularly for business, you may be able to deduct a portion of rent, utilities, and internet costs. The space must be your principal place of business. This applies whether your home is in the US or abroad.
Who is this for?
Browse by your situation for tailored guidance and the right package.
