IRS Form 1040 2018 Schedule C-Ez - Net Profit From Business (Sole Proprietorship)

What Is IRS Form 1040 Schedule C-EZ?

IRS Form 1040 Schedule C-EZ, Net Profit from Business (Sole Proprietorship) is a form you complete to report income and loss from a business, qualified joint venture, or profession you practiced as a sole proprietor. It is a simplified variant of Schedule C, Profit or Loss from Business (Sole Proprietorship). The document is part of the IRS 1040 forms you fill out to report and deduct different types of income and loss.

The schedule - also known as the net profit from business form - was issued by the Internal Revenue Service (IRS) and is updated annually. The fillable version of Schedule C-EZ is available for download below.

You are eligible to complete Schedule C-EZ to report a profit from your business if you:

  • Had no business expenses that exceed $5,000;
  • Did not have a net loss for the tax year you report;
  • Are a sole proprietor, qualified joint venture, or statutory employee who operates only one business;
  • Apply cash method of accounting;
  • Had neither employees no inventory for the tax year you report;
  • Do not apply for a homeowner's deduction to deduct expenses for business use of your home;
  • Had no unallowed passive activity losses from your business for the previous year;
  • Do not have to submit IRS Form 4562, Depreciation and Amortization.

Using this simplified form instead of the longer Schedule C can considerably reduce filing time and paperwork.

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Net Profit From Business
SCHEDULE C-EZ
OMB No. 1545-0074
(Form 1040)
2018
(Sole Proprietorship)
Partnerships, joint ventures, etc., generally must file Form 1065.
Department of the Treasury
Attachment
09A
Attach to Form 1040, 1040NR, or 1041.
See instructions on page 2.
Sequence No.
Internal Revenue Service (99)
Name of proprietor
Social security number (SSN)
Part I
General Information
• Had no employees during the year,
• Had business expenses of $5,000 or
less,
• Do not deduct expenses for business
You may use
use of your home,
• Use the cash method of accounting,
Schedule C-EZ
• Do not have prior year unallowed
instead of
• Did not have an inventory at any time
And you:
passive activity losses from this
during the year,
Schedule C
business, and
only if you:
• Did not have a net loss from your
• Are not required to file Form 4562,
business,
Depreciation and Amortization, for
• Had only one business as either a sole
this business. See the instructions for
proprietor, qualified joint venture, or
Schedule C, line 13, to find out if you
statutory employee,
must file.
A Principal business or profession, including product or service
B
Enter business code (see page 2)
D
C Business name. If no separate business name, leave blank.
Enter your EIN (see page 2)
E Business address (including suite or room no.). Address not required if same as on page 1 of your tax return.
City, town or post office, state, and ZIP code
Did you make any payments in 2018 that would require you to file Form(s) 1099? (see the Instructions for
F
Schedule C)
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Yes
No
If “Yes,” did you or will you file required Forms 1099? .
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Yes
No
G
Part II
Figure Your Net Profit
Gross receipts. Caution: If this income was reported to you on Form W-2 and the “Statutory
1
employee” box on that form was checked, see Statutory employees in the instructions for
Schedule C, line 1, and check here
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1
2
Total expenses (see page 2). If more than $5,000, you must use Schedule C
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2
3
Net profit. Subtract line 2 from line 1. If less than zero, you must use Schedule C. Enter on both
Schedule 1 (Form 1040), line 12, and Schedule SE, line 2, or on Form 1040NR, line 13, and
Schedule SE, line 2 (see page 2). (Statutory employees do not report this amount on Schedule
SE, line 2.) Estates and trusts, enter on Form 1041, line 3. .
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3
Part III
Information on Your Vehicle. Complete this part only if you are claiming car or truck expenses on line 2.
4
When did you place your vehicle in service for business purposes? (month, day, year)
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5
Of the total number of miles you drove your vehicle during 2018, enter the number of miles you used your vehicle for:
a Business
b Commuting (see page 2)
c Other
6
Yes
No
Was your vehicle available for personal use during off-duty hours? .
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7
Do you (or your spouse) have another vehicle available for personal use? .
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Yes
No
8a Do you have evidence to support your deduction?
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Yes
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b If “Yes,” is the evidence written? .
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Yes
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For Paperwork Reduction Act Notice, see the separate instructions for Schedule C (Form 1040).
Cat. No. 14374D
Schedule C-EZ (Form 1040) 2018
Net Profit From Business
SCHEDULE C-EZ
OMB No. 1545-0074
(Form 1040)
2018
(Sole Proprietorship)
Partnerships, joint ventures, etc., generally must file Form 1065.
Department of the Treasury
Attachment
09A
Attach to Form 1040, 1040NR, or 1041.
See instructions on page 2.
Sequence No.
Internal Revenue Service (99)
Name of proprietor
Social security number (SSN)
Part I
General Information
• Had no employees during the year,
• Had business expenses of $5,000 or
less,
• Do not deduct expenses for business
You may use
use of your home,
• Use the cash method of accounting,
Schedule C-EZ
• Do not have prior year unallowed
instead of
• Did not have an inventory at any time
And you:
passive activity losses from this
during the year,
Schedule C
business, and
only if you:
• Did not have a net loss from your
• Are not required to file Form 4562,
business,
Depreciation and Amortization, for
• Had only one business as either a sole
this business. See the instructions for
proprietor, qualified joint venture, or
Schedule C, line 13, to find out if you
statutory employee,
must file.
A Principal business or profession, including product or service
B
Enter business code (see page 2)
D
C Business name. If no separate business name, leave blank.
Enter your EIN (see page 2)
E Business address (including suite or room no.). Address not required if same as on page 1 of your tax return.
City, town or post office, state, and ZIP code
Did you make any payments in 2018 that would require you to file Form(s) 1099? (see the Instructions for
F
Schedule C)
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Yes
No
If “Yes,” did you or will you file required Forms 1099? .
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Yes
No
G
Part II
Figure Your Net Profit
Gross receipts. Caution: If this income was reported to you on Form W-2 and the “Statutory
1
employee” box on that form was checked, see Statutory employees in the instructions for
Schedule C, line 1, and check here
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1
2
Total expenses (see page 2). If more than $5,000, you must use Schedule C
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2
3
Net profit. Subtract line 2 from line 1. If less than zero, you must use Schedule C. Enter on both
Schedule 1 (Form 1040), line 12, and Schedule SE, line 2, or on Form 1040NR, line 13, and
Schedule SE, line 2 (see page 2). (Statutory employees do not report this amount on Schedule
SE, line 2.) Estates and trusts, enter on Form 1041, line 3. .
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3
Part III
Information on Your Vehicle. Complete this part only if you are claiming car or truck expenses on line 2.
4
When did you place your vehicle in service for business purposes? (month, day, year)
.
5
Of the total number of miles you drove your vehicle during 2018, enter the number of miles you used your vehicle for:
a Business
b Commuting (see page 2)
c Other
6
Yes
No
Was your vehicle available for personal use during off-duty hours? .
.
.
.
.
.
.
.
.
.
.
.
.
7
Do you (or your spouse) have another vehicle available for personal use? .
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Yes
No
8a Do you have evidence to support your deduction?
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Yes
No
b If “Yes,” is the evidence written? .
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Yes
No
For Paperwork Reduction Act Notice, see the separate instructions for Schedule C (Form 1040).
Cat. No. 14374D
Schedule C-EZ (Form 1040) 2018
2
Schedule C-EZ (Form 1040) 2018
Page
Instructions
Line E
Enter your business address. Show a street address instead of a
Future developments. For the latest information about
box number. Include the suite or room number, if any.
developments related to Schedule C-EZ (Form 1040) and its
instructions, such as legislation enacted after they were published,
Line F
go to www.irs.gov/ScheduleCEZ.
See the instructions for Schedule C, line I, to help determine if you
Before you begin, see General Instructions in the 2018
!
are required to file any Forms 1099.
Instructions for Schedule C.
CAUTION
Line 1
You can use Schedule C-EZ instead of Schedule C if:
Enter gross receipts from your trade or business. Include amounts
• You operated a business or practiced a profession as a sole
you received in your trade or business that were properly shown on
proprietorship or qualified joint venture, or you were a statutory
Form 1099-MISC. If the total amounts that were reported in box 7 of
employee, and
Forms 1099-MISC are more than the total you are reporting on line
• You have met all the requirements listed in Schedule C-EZ, Part I.
1, attach a statement explaining the difference. You must show all
items of taxable income actually or constructively received during
For more information on electing to be taxed as a qualified joint
the year (in cash, property, or services). Income is constructively
venture (including the possible social security benefits of this
received when it is credited to your account or set aside for you to
election), see Qualified Joint Venture in the Instructions for Schedule
use. Don’t offset this amount by any losses.
C. You can also go to www.irs.gov/QJV.
Line 2
Line A
Enter the total amount of all deductible business expenses you
Describe the business or professional activity that provided your
actually paid during the year. Examples of these expenses include
principal source of income reported on line 1. Give the general field
advertising, car and truck expenses, commissions and fees,
or activity and the type of product or service.
insurance, interest, legal and professional services, office expenses,
Line B
rent or lease expenses, repairs and maintenance, supplies, taxes,
travel, the allowable percentage of business meals and
Enter the six-digit code that identifies your principal business or
entertainment, and utilities (including telephone). For details, see the
professional activity. See the Instructions for Schedule C for the list
instructions for Schedule C, Parts II and V. You can use the optional
of codes.
worksheet below to record your expenses. Enter on lines b through
Line D
f the type and amount of expenses not included on line a.
If you claim car or truck expenses, be sure to complete Schedule
Enter on line D the employer identification number (EIN) that was
C-EZ, Part III.
issued to you and in your name as a sole proprietor. If you are filing
Form 1041, enter the EIN issued to the estate or trust. Do not enter
Line 3
your SSN. Do not enter another taxpayer’s EIN (for example, from
any Forms 1099-MISC that you received). If you do not have an
Nonresident aliens using Form 1040NR should also enter the total
EIN, leave line D blank.
on Schedule SE, line 2, if you are covered under the U.S. social
security system due to an international social security agreement
You need an EIN only if you have a qualified retirement plan or
currently in effect. See the Instructions for Schedule SE for
are required to file an employment, excise, alcohol, tobacco, or
information on international social security agreements.
firearms tax return, are a payer of gambling winnings, or are filing
Form 1041 for an estate or trust. If you need an EIN, see the
Line 5b
Instructions for Form SS-4.
Generally, commuting is travel between your home and a work
Single-member LLCs. If you are the sole owner of an LLC that is
location. If you converted your vehicle during the year from personal
not treated as a separate entity for federal income tax purposes,
to business use (or vice versa), enter your commuting miles only for
enter on line D the EIN that was issued to the LLC (in the LLC’s
the period you drove your vehicle for business. For information on
legal name) for a qualified retirement plan, to file employment,
certain travel that is considered a business expense rather than
excise, alcohol, tobacco, or firearms returns, or as a payer of
commuting, see the instructions for Schedule C, line 44b.
gambling winnings. If you do not have such an EIN, leave line D
blank.
Optional Worksheet for Line 2 (keep a copy for your records)
a Deductible meals (see the instructions for Schedule C, line 24b) .
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b
b
c
c
d
d
e
e
f
f
g Total. Add lines a through f. Enter here and on line 2
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Schedule C-EZ (Form 1040) 2018

Download IRS Form 1040 2018 Schedule C-Ez - Net Profit From Business (Sole Proprietorship)

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IRS Form 1040 Schedule C-EZ Instructions

Fill out the schedule as follows:

  1. Line A. Provide information about the business or activity that was the main source of the income you report on this schedule. Specify the general field and the type of product or service you provide;
  2. Line B. Enter the six-digit code to identify your business or activity. Find the list of codes in the IRS-distributed Instructions for Schedule C;
  3. Line C. Self-explanatory;
  4. Line D. If you are a sole proprietor, enter your employer identification number (EIN). If you are filing this schedule with IRS Form 1041, indicate the EIN issued to the estate or trust. If you have no EIN, skip this line. Do not enter your Social Security number instead;
  5. Line E. Self-explanatory;
  6. Lines F - G. Read the IRS-issued Instructions for Schedule C to find out if you need to file an IRS Form 1099;
  7. Line 1. Provide all taxable income you actually or constructively received during the reported tax year;
  8. Line 2. Indicate the full amount of business expenses you paid. Use the worksheet provided in the instructions to calculate your deductible expenses;
  9. Line 3. If you are nonresident foreigner using Form 1040NR, enter the total you provide on this line on Schedule SE, Line 2 as well;
  10. Part III. Lines 4 - 8. Fill out this part only if claiming vehicle expenses.

Find more information and the Optional Worksheet for Line 2 in the instructions attached to the form. Submit this schedule attached to IRS Form 1040, IRS Form 1040NR, or IRS Form 1041.

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