Schedule C - Business Income and Loss

Schedule C - Business Income and Loss

To create a Schedule C in Software, from the Federal Section of the tax return, select:

  • Income
  • Profit or Loss from Business - For a return filing MFJ, indicate if the business is for the taxpayer or the spouse. (Indicating the business is a Qualified Joint Venture is done in the Questions menu.)
    • Enter the business name if it has one.
    • Enter the business's EIN if it has one.
    • Enter the business's address if it's different than the address on the tax return.
    • Enter the 6-digit business activity code. This is required.
    • Enter a maximum 20-character description of what the business does, then click Continue.
    • Questions About the Operation of Your Business - Complete as needed.
    • Income - Enter the income as needed. Use the blue squares if you wish to itemize any category for more clarity as to the different sources of income.
    • Cost of Goods Sold - Complete as needed if the business has inventory for sale.
    • General Expenses - Complete as needed. If an expense doesn't fit any category, that expense will be entered under Other Expenses.
    • Car and Truck Expenses - If using standard mileage to compute vehicle expenses, enter the vehicle descriptions and mileages here.
    • Depreciation - Enter assets being depreciated in this menu. For vehicles, their actual operating costs are entered here too.
    • Other Expenses - Enter any expense here that doesn't fit any other menu category.
    • Qualified Business Income Deduction - The program will calculate QBI, but it can be adjusted here if needed (this is uncommon). Also, enter under this menu the W-2 wages paid and the unadjusted basis of the depreciable assets. Indicate also if this is a specified service trade or business (SSTB).
    • Expenses for Business Use of Your Home - If the business qualifies, select this menu to complete Form 8829. (Note that Form 8829 cannot cause the Schedule C to result in a loss but can only reduce net profit to zero.)