Taxes For Dummies

Chapter 13

Business Tax Schedules: C and F

IN THIS CHAPTER

Using Schedule C

Reporting income

Tallying and categorizing expenses

Understanding the nuances of Schedule F for farmers

Running your own firm really can be the American dream. In fact, the only thing better than working for yourself is knowing how to keep more of what you earn. It’s like giving yourself an immediate raise at tax time.

If you’re self-employed, you must report your income and business expenses on Schedule C. If you are used to filing on Schedule C-EZ, that form was discontinued in 2019; going forward, Schedule C is your only choice for a business run as a sole proprietorship or a single-member LLC that has not made an election to be treated as an S corporation. You determine your profit, on which you pay tax, by subtracting your expenses from your income. (Farmers use Schedule F instead, but many of the same principles apply.)

Married couples who operate a small business together no longer have to prepare ...