What Tax
Forms to Use When You Have Your Own Business: IRS Schedule C
Did you make money on the side this year? Or did you quit your wage job and start your
own business? How about weekend odd jobs
for neighbors where cash was accepted?
If you said yes to any of these questions, it means you are self
employed and you’ll have to fill out Schedule C when you do your taxes.
Schedule C is called Profit or Loss from a Business. If you are self-employed, you will need to
fill out this tax form and attach it to your IRS 1040 when filing your federal
taxes. You can list expenses and you may
come up with a net loss, but the form still has to be submitted with your
Federal Income Tax form.
The Schedule C-EZ
Great news, there’s an easy (EZ) form of the Schedule
C. Here’s how to qualify for using the
simpler form:
you are a sole proprietor
you had less than $5000 in business expenses
had a net profit
no business inventory
no employees
no home-office deduction
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