- More about Schedule C and who must file this form
- Information and tax records needed to complete Schedule C, as well as how to complete this form.
- How to file Schedule C with the IRS
- Whether you might be eligible to file Schedule C-EZ for a simple business
- How to calculate your self-employment tax payment requirement for Social Security and Medicare taxes, using the net profit from y our Schedule C.
- How to calculate cost of goods sold, if you have product inventory.
- And how to correct errors in your Schedule C.
This article lists the records you need to complete Schedule C and explains the details needed.
You should start with a profit and loss statement, and records on your business assets (equipment and vehicles) and depreciation. Include travel expense records. If you have a home-based business, you will need information on your home business expenses.
If you have an inventory of products, you will need to gather records and information for cost of goods sold.
Finally, of course, you'll need documentation on your business expenses for the year.
A husband-wife partnership may be able to be considered as a qualified joint venture and be able to file taxes as two sole proprietors, saving the cost of preparing a partnership tax return. In this case, each spouse completes Schedule C for his or her portion of the company's income and expenses. Read more about qualifications and filing in this article.
Yes, you must file a business tax return for every business you own, even if that business had a loss for the year. You can't lump all your businesses together and file one Schedule C for all of them.
If you have products that you sell, you may have an inventory of those products. In this case, you will need to do a calculation of cost of goods sold on your Schedule C. This article explains the process of calculating cost of goods sold.
Self-employment tax is the tax you pay for Medicare and Social Security, based on your business income from Schedule C. This article explains how the calculation for self-employment tax works, using Schedule SE.
To correct an error in Schedule C, you can't just file a new Schedule C, because this form is connected the rest of your personal tax return. The total amount you pay for income taxes and self-employment taxes depends on the information from your Schedule C. To make changes to Schedule C, you will need to file an amended personal income tax return, using Form 1040x. This article provides detailed instructions on how to file this amended Schedule C, along with your amended personal tax return.
Schedule C for Small Business Taxes - Your Questions Answered
Answers to Your Questions about Schedule C
Sole proprietors and single-member LLC owners file their business tax returns on Schedule C. The net income from this form is included with other income on the individual's Form 1040 - personal tax return.
In this article you'll learn:
In addition, you'll find information about how to file Schedule C forms for a partnership with two spouses. If your business is a husband-wife partnership, you may be able to file as a qualified joint venture, using two Schedule C forms and dividing business income and losses between you and your spouse.