You may be wondering whether or not you need to file a schedule C or a schedule C-EZ with your tax return. If you are not sure if you need to file either form, then the following information should help determine what form is right for you if any.
Are you the sole owner of a business or operate as an independent contractor? If you are, and you have earned more than $400.00 in profit you will need to file a schedule C (I) with your tax return.
If you meet the following requirements you may file the schedule C-EZ which is considered the short form.
- Business expenses are $5,000 or less
- Do not have inventory at any time of the year
- Never hire an employee
- Do not depreciate any business property
- Do not claim expenses for business use of your home
- Use the cash method for accounting
Also, if you are claiming a loss for the year you must file a schedule C form, not the EZ form.
Be sure to take into account your business deductions that you can write off on your return. The following deductions are the most beneficial to a business:
- Depreciation of a computer or a cellular phone
- Dues to professional societies, chambers of commerce and unions
- Education that is employment related
- Home office expenses
- Tools and Supplies used for work
- Travel, transportation, and gift expenses related to work
- Work clothes, uniforms and their upkeep costs
Visit TurboTax Online to file your schedule C form along with your tax return. TurboTax will ask you all the necessary questions for complete accuracy in filing your taxes for your business.