Can I Use Schedule C-EZ?
As of the current tax year, the IRS no longer provides Schedule C-EZ (Form 1040) for reporting business income or loss. The simplified version of Schedule C has been discontinued. Instead, taxpayers must use the full Schedule C (Form 1040) to report profit or loss from a business operated as a sole proprietor.
When Is Schedule C Required?
- Use Schedule C to report income or loss from a business you operated or a profession you practiced as a sole proprietor.
- It is also used to report wages and expenses as a statutory employee, income from certain qualified joint ventures, and amounts shown on Forms 1099-MISC, 1099-NEC, or 1099-K.
- Activities must be conducted with continuity and regularity for profit to qualify as a business. Sporadic or hobby activities do not qualify.
What If I Have Self-Employment Income?
- If you have self-employment income, you must file Schedule SE (Form 1040) to pay self-employment tax.
- Net profit from Schedule C is included on Schedule 1 (Form 1040), line 3, and must be reported on Schedule SE, line 2, unless you are a statutory employee.
- Statutory employees must report their net profit on Schedule 1, line 3, but do not report it on Schedule SE, line 2.
Important Notes
- Do not combine self-employment income and statutory employee income on a single Schedule C. You must file two separate Schedules C if both apply.
- For business expenses unrelated to home use (e.g., advertising, supplies, wages), use Part II of Schedule C.
- For more details on deductions and reporting requirements, refer to the official IRS instructions for Schedule C.
Source:
Schedule C (Form 1040) Instructions
Disclaimer: Always verify information with the official Federal or State Department of Revenue Forms and Instructions before filing your tax return.