Question

Schedule C-EZ Net Profit from Business (Sole Proprietorship)

Accepted Answer

Starting in tax year 2015, TaxAct now supports Schedule C-EZ. Although a taxpayer may be eligible to use Federal Schedule C-EZ, it is never required.

The IRS instructions for Schedule C-EZ, Net Profit From Business, indicate you may use Schedule C-EZ instead of Schedule C only if you meet all of the following qualifications:

Had business expenses of $5,000 or less,
Use the cash method of accounting,
Did not have and inventory at any time during the year,
Did not have a net loss from your business,
Had only one business as either a sole proprietor, qualified joint venture, or statutory employee,
Had no employees during the year,
Do not deduct expenses for business use of your home,
Do not have prior year unallowed passive activity losses from this business, and
Are not required to file Form 4562, Depreciation and Amortization, for this business. See the instructions for Schedule C, line 13, to find out if you must file.

If you have the TaxAct Free edition, you will be prompted to upgrade to TaxAct Plus (for Schedule C-EZ) or TaxAct Premium (for Schedule C) during the Self-Employment section.

To enter the data in the program to complete Schedule C OR Schedule C-EZ:

From within your TaxAct return (Online or Desktop), click on the Federal tab. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal.
Click Business Income to expand the category and then click Business income or loss from a sole proprietorship
Click Add to create a new copy of the form or click Review to review a form already created
The program will proceed with the interview questions for you to enter or review the appropriate information

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.