Back to List

Form 1040 - Schedule C

Schedule C-EZ, Net Profit from Business (Sole Proprietorship), is the simplified version of Schedule C, Profit or Loss from Business (Sole Proprietorship). Want to save time and trouble when filing taxes for your small business? You may be eligible to use the abbreviated Schedule C-EZ instead of the longer Schedule C when reporting business income and expenses on your Form 1040 federal income tax return. Using Schedule C-EZ can save time and reduce paperwork burden for eligible businesses.

Who can use Schedule C-EZ?

If you have a profit from your business and:

  • your expenses are not greater than $5,000,
  • you have no employees,
  • you have no inventory, and
  • you are not using depreciation or deducting the cost of your home you can use Schedule C-EZ.

Use Schedule C to report wages and expenses as a statutory employee, income and deductions of qualified joint ventures, and certain income reported on Form 1099-MISC.

If a taxpayer owns and operates more than one sole proprietorship, do not combine the activities.  A separate Schedule C should be filed for each business activity.  Combining separate activities on to one Schedule C could result in negligence penalties.

If a taxpayer receives income as both a self-employed individual and as an employee in the same line of work, and expenses cannot be specifically identified as either for self-employment or as an employee, expenses must be allocated between Schedule C and Form 2106.

Select the links below to show/hide additional information:

 To Enter A Schedule C Entry
 To Edit A Schedule C Entry
 To Delete A Schedule C Entry
 To Enter Schedule C Expenses
 To Enter Royalty IncomeOn Schedule C
 To Prepare A Joint Venture On A Schedule C
 To Enter Amortization On Schedule C
 To Enter Business Use of the Home On Schedule C
 To Report Depletion On Schedule C

NOTE: This is a guide on entering Schedule C income or loss into the TaxSlayer Pro program.  This is not intended as tax advice.  For additional information refer to the Additional Links below.

Additional links:
Statutory Employee Income
Self Employment Tax
Due Diligence and Schedules A, C and E
Instructions for Schedule C - Profit or Loss From Business
Instructions for Schedule C-EZ - Net Profit From Business
Publication 334, Tax Guide for Small Business
Publication 535, Business Expenses
Publication 583, Starting a Business and Keeping Records
Publication 946, How To Depreciate Property

Last Updated: 10/6/2016

Email Article