The IRS says:
Small businesses and statutory employees with expenses of $5,000 or less may be able to file Schedule C-EZ instead of Schedule C.
More specifically, you can use Schedule C-EZ if:
- You had business expenses of $5,000 or less
- You use the cash method of accounting
- Had no inventory at any time during the year
- Did not have a net loss from your business; in other words, your business had a profit for the year
- And had only one business as either sole proprietor, qualified joint venture, or statutory employee.
How Do I Complete Schedule C-EZ?
- Complete the general information about your business:
- Total your gross receipts (income/sales)
- Total your business expenses
- Subtract expenses from receipts to get your net profit.
- Provide information about your vehicle, if you are claiming one for business purposes.
More information on Schedule C, including instructions on how to prepare, when you can use Schedule C-EZ, and more.