IRS Form Schedule C Instructions

Profit or Loss From Business

Use Schedule C (Form 1040) to report income or loss from a business you operated or a profession you practiced as a sole proprietor.

An activity qualifies as a business ifyour primary purpose for engaging in the activity is for income or profit and you are involved in the activity with continuity and regularity.

For example, a sporadic activity or a hobby does not qualify as a business.

To report income from a nonbusiness activity, see the instructions for Form 1040, line 21, or Form 1040NR, line 21.

Also use Schedule C to report (a) wages and expenses you had as a statutory em ployee, (b) income and deductions of certain qualified joint ventures, and (c) certain income shown on Form 1099-MISC, Miscellaneous Income.

See the Instructions for Recipient

(Back of Copy B of Form 1099-MISC) for the types of income to report on Schedule C. Small businesses and statutory employees with business expenses of $5,000 or less may be able to file Schedule C-EZ instead of Schedule C.

See Schedule C-EZ for details.

You may be subject to state and local taxes and other requirements such as business licenses and fees. Check with your state and local governments for more information".

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