Schedule C: Massachusetts Profit or Loss from Business (2025)
Massachusetts · Massachusetts DOR · Used for tax years 2025
Massachusetts Schedule C reports business income and expenses for 2025 and calculates net profit or loss to enter on Form 1 or Form 1 NR/PY. It includes Schedule C-1 to calculate the cost of goods sold or operations.
What you'll need
Have the information requested on the form ready:
- Your name and Social Security number, business name, employer identification number (if any), and mailing address.
- Your main business or profession, principal business code from U.S. Schedule C, number of employees, and accounting method.
- Amounts for business receipts, returns and allowances, other income, and the expenses listed on Schedule C.
- Inventory, purchases, labor, materials, supplies, and other cost amounts if completing Schedule C-1.
- Any allowable prior-year suspended PAL amount you are applying on line 36.
Schedule C-1 requires an enclosed explanation if you use an inventory valuation method marked “Other,” change how inventory quantities, costs, or values are determined, or report beginning inventory that differs from last year’s closing inventory. Enclose a statement for other costs reported on Schedule C-1, line 5.
Common mistakes
- Fill in ovals completely. If any line shows a loss, mark an X in the box to the left of that line.
- Do not assume the full loss on line 31 is deductible. The form warns that it may be limited and directs you to line 33.
- Do not include salary paid to yourself in Schedule C-1, line 3, cost of labor.
- Do not include supplies already included on Schedule C-1 in Schedule C, line 20.
- For deductible meals on line 23, consult the instructions for the appropriate percentage and limitations. The form does not print a percentage.
- Remember to enclose the explanations and statement requested on Schedule C-1 when they apply.
Questions people ask
Where do I enter my net profit or loss on my Massachusetts return?
Enter Schedule C, line 37, on Form 1, line 6a, or Form 1 NR/PY, line 8a.
How do I calculate cost of goods sold and/or operations?
On Schedule C-1, add lines 1 through 5 and enter the total on line 6. Subtract ending inventory on line 7 from line 6. Enter the result on Schedule C-1, line 8, and Schedule C, line 2.
What happens if line 31 shows a loss?
Go to line 32 and review line 33. If all your investment is at risk, fill in oval 33a, enter the loss on line 32, and go to line 35. If some investment is not at risk, fill in oval 33b and see the instructions for the line 32 entry before going to line 35.
What if my business income was reported on Form W-2?
Fill in the designated oval if the income was reported on Form W-2 and that form’s “Statutory employee” box was checked.