IRS Form Schedule C EZ & Information

NET PROFIT FROM BUSINESS - Sole Proprietorship
The Schedule C-EZ Form

For the sole-proprietors, you can use this simpler form only if you showed a profit.

The form cuts out a lot of the details asked for on the Schedule C form.

It wants you to report your total business receipts and expenses. The stipulation here is that you must be able to report no more than $5,000 in your business expenses.

 You have to have a cash method of accounting.
 You have to show a net profit. You also can not have held business inventory during the year.

You also can not have any employees, and you can not claim any deduction for a home office or business use of your home.

 You must have had only one business as either a sole proprietor, qualified joint venture, or a statutory employee.

 You can not have had any employees during the tax year.
 You must not be required to fill out a form 4562. (Schedule C line 13).

 You can not have had prior year un-allowed passive activity loss from this business.

 You will have to fill out a separate section if you take expenses for a vehicle.

Download the form Schedule C-EZ here.
It is also known as F1040sce.