This topic has explained how to complete Parts I, II, and III of Schedule C-EZ, Net Profit From Business.

The flowchart at the top of Part I is used to determine whether the taxpayer is eligible to use this form instead of Schedule C for reporting self-employment income. The rest of Part I is for general information about the taxpayer's business.

Part II is used to enter gross receipts and total expenses, and to calculate the net profit. If the profit is more than zero, the taxpayer must also file Schedule SE. If there is a net loss, then the taxpayer must file Schedule C instead of Schedule C-EZ.

Part III should be completed only if the taxpayer is claiming car and truck expenses in Part II.