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
[INSERT: customer testimonial, e.g. "freelance developer in Medellín, Colombia, saved money and stress using Nomadic.Tax"]
- freelance developer, Medellín, Colombia
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.