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TaxAct 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.

Depending on which TaxAct program you are using, you may be prompted to upgrade during the Self-Employment interview section.

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

  1. From within your TaxAct return (Online or Desktop), click Federal and then click Business income or loss from a sole proprietorship in the Federal Quick Q&A Topics menu.
  2. Click New Copy of Federal Schedule C (Desktop users click Add) to create a new copy of the form or click Review to review a form already created 
  3. The program will proceed with the interview questions for you to enter or review the appropriate information

Note: 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.

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