Knowledge Base

Frequently Asked Questions

Net Profit from Business - Form 1040 Schedule C-EZ

Schedule C-EZ is a simpler version of the normal Schedule C. You attach to your 1040 to report income and expenses, and ultimately your net profit or loss, from your small business. As a simplified version of the form, Schedule C-EZ can save you time and trouble.

It makes sense to file Schedule C-EZ if you operate a business as a sole proprietorship or qualified joint venture, or were a statutory employee, and over the course of the year met the following requirements:

You made a net profit

You did not have more than $5,000 of business expenses

You did not have any employees

You did not have any inventory

You are not using depreciation (Form 4562) for this business

You are not deducting expenses for the business use of your home

Refer to Part I of Schedule C-EZ for a more detailed list of requirements. If you meet all of them, you can file Schedule C-EZ. If not, you’ll have to file a normal Schedule C.