Should I File Schedule C or Schedule C-EZ?
What is Schedule C-EZ?
Schedule C-EZ, Net Profit from Business (Sole Proprietorship), is the simplified version of Schedule C, Profit or Loss from Business (Sole Proprietorship). Want to save time and trouble when filing taxes for your small business? You may be eligible to use the abbreviated Schedule C-EZ instead of the longer Schedule C when reporting business income and expenses on your Form 1040 federal income tax return. Using Schedule C-EZ can save time and reduce paperwork burden for eligible businesses.
Who can use Schedule C-EZ?
If you have a profit from your business and:
- your expenses are not greater than $5,000,
- you have no employees,
- you have no inventory, and
- you are not using depreciation or deducting the cost of your home you can use Schedule C-EZ.
What’s in it?
- An instruction page and a one-page form with three short parts - General Information, Figure Your Net Profit, and Information on Your Vehicle.
- A simple worksheet for figuring the amount of deductible expenses