For Tax Year 2012, taxpayers could use Schedule C-EZ
if they: had business expenses of $5,000 or less; used the cash accounting method; had no inventories; did not report a loss from the business; had only one business as a sole proprietor; had no employees; were not required to file Form 4562, Depreciation and Amortization, for the business; claimed no deduction for home business expenses; and had no prior-year disallowed passive activity losses from the business.
Another successful recommendation was to increase the filing threshold for Schedule C-EZ
If the embezzled funds are from self-employment activity, schedule C or schedule C-EZ
should be used and the amount is subject to self-employment taxes.
Additional forms that will be eligible for 1993 are Forms 1116, 4970, 4972, 8396, 8615, 8814, 8815 and 8828, and Schedule C-EZ
The Schedule C-EZ
has 15 lines compared to 44 on the regular Schedule C.
Sole proprietors can save time by completing a Schedule C-EZ
, the short version of the Schedule C, which is the form sole proprietors need to complete when filing their tax forms.
An additional 400,000 small business owners can file schedule C-EZ
, a simplified form, to report their profits, because the IRS removed the $25,000 gross receipts limitation and increased the business expenses limit to $2,500.
-- for self-employed taxpayers who have gross business receipts of $25,000 or less and have $2,000 or less in business expenses.
Beginning this year, many sole proprietors will use a simplified schedule C-EZ
Schedule C and Schedule C-EZ
are the source of sole proprietorship statistics.
Figure F presents the numbers and percentages of nonfarm proprietorship returns filed on Schedule C-EZ
by industrial sector.
1) Excludes amounts reported on Schedule C-EZ
filed by certain small businesses not required to itemize their business deductions.