PriorTax | Net Profit from Business - Schedule C-EZ

Net Profit from Business - 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.