Form Schedule C-EZ Net Profit From Business

Form Schedule C-EZ Net Profit From Business

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INSTRUCTIONS: NET PROFIT FROM BUSINESS SCHEDULE C-EZ

 

A sole proprietorship can only use this form if:

·  business expenses were $5,000 or less

·  used cash method of accounting

·  no inventory during the year

·  did not have a net loss

·  had only one business as a sole proprietor, joint venture, or statutory employee

·  did not receive any credit card or similar payments that were not includible in income

·  has no employees

·  are not required to file Form 4562

·  did not deduct expenses for a home business

·  do not have prior year unallowed passive activity losses

“Net Profit from Business Schedule C-EZ Step 1”

On line A, describe your business activity for your principal source of income on lines 1a-1d.

“Net Profit from Business Schedule C-EZ Step 2”

On line B, see the instructions for Schedule C for the list of codes.

“Net Profit from Business Schedule C-EZ Step 3”

On line D, provide your employee identification number, and if your are filing Form 1041, provide the EIN issued to the estate.  If you do not have an EIN, leave line D blank.

“Net Profit from Business Schedule C-EZ Step 4”

On line E, provide your business address, and do not provide a box number. 

“Net Profit from Business Schedule C-EZ Step 5”

For line F, see the instructions for line I within the instructions for Schedule C to determine if you need to file any 1099 Forms. 

“Net Profit from Business Schedule C-EZ Step 6”

Because the IRS had deferred the requirement to report third party network payments received, enter zero on line 1a and report all gross receipts on line 1b.  Include amounts received shown on Form 1099-MISC.  See the second page of this form for more information on line 1b. 

“Net Profit from Business Schedule C-EZ Step 7”

For line 2, enter the total amount of all deductible business expenses actually paid during the year.  For more information, see Parts II and V of Schedule C.  If claiming car or truck expenses, make sure to fill out Part III of this form.

“Net Profit from Business Schedule C-EZ Step 8”

If you’re a non-resident alien, enter the total amount from Schedule SE, line 2 if covered by the U.S. social security system.  See the second page of this form for further instructions. 


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