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Schedule C Form - Information and Instructions

How to Prepare Schedule C for Form 1040

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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.  Schedule C-EZ is a simplifiied form that may be used by some smaller businesses.  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. 

1. What is Schedule C?

Schedule C is used to calculate the net business income for a sole proprietor or single-member LLC business owner. 

2. What Tax Documents Do I Need In Order to Complete Schedule C?

This aricle lists the documents you need to complete Schedule C, including a profit and loss statement, asset and vehicle records, travel expense records, and home business records.

3. How Do I Complete Schedule C?

Follow the instructions to gather information and complete Schedule C and calculate the net income from your business.  You must complete a separate Schedule C for each sole proprietorship owned by you or your spouse.

4. How Do I Include Schedule C Information in my Personal Tax Return?

Next, take the information from your net income calculation and add it to your personal tax return.  This article shows you eactly how to do this, and how your Schedule C information fits into your total tax bill. 

5. Can I File Schedule C-EZ?

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. Learn more about the requirements for being able to file this form and how to complete it.

6. How Do I File Schedule C for a Husband-Wife Partnership?

A husband-wife partnership may be able to be considered as a qualified joint venture if it meets certain criteria.  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.

7. Must I File a Schedule C for Each Business I Own?

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. 

8. How Do I Correct an Error in Schedule C? Do I File an Amended Schedule C?

To correct an error in 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.

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