How to Fill out Schedule C Form 1040 - Sole Proprietorship Taxes
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- Опубликовано: 12 июн 2024
- Whether you started driving for Uber, renting out your home, or finally started the business of your dreams; congratulations, you’re considered a small business owner!
As a business owner you need to become familiar with Form 1040 Schedule C. This is how you’ll report your business revenue, expenses, and deductions for tax purposes. While you unfortunately have more tax forms to deal with, the positive is that when filing sole proprietorship taxes, you’re going to be able to write off a ton of things and hopefully pay less in taxes than you did before!
Self employment tax deductions can be pretty great:
- You can write off 100% of the cost of meal through the end of 2022
- You're able to write off travel expenses
- If you work from home, you can claim the home office deduction which could be worth up to $1,500!
- Including all of your Schedule C expenses can dramatically lower your tax bill
Schedule C Form 1040 www.irs.gov/forms-pubs/about-...
0:00 Congratulations!
0:22 Schedule C Items A-J
2:45 Schedule C Items 1-7
3:39 Schedule C Items 8-27
7:00 Schedule C Items 28-32
8:18 Schedule C Items 33-42 Cost of Goods Sold
10:17 Schedule C Items 43-47 Vehicle Information
11:16 Schedule C Final Items
#taxes #smallbusiness #soleproprietorship
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DISCLOSURE: We are not financial advisers. The ideas presented in this video are for entertainment purposes only. Although the information is researched and vetted beforehand, it may not be up to date at the time of viewing. Please do your due diligence and research on the topic. You (and only you) are responsible for the financial decisions that you make.
What’s your business?
Reselling stuffs
Thanks for the reply. Driving Uber, not reselling.
Retail for cosmetics and accessories!
I do Digital Art ,What code would that Be ,Would it be 711510? Independent Artist .
quantum nova solutions - commercial and residential cleaning
IRS hotline is a massive waste of tax payer money - they may as well shut it down no useful purpose in their hotline since they "do not & cannot answer specific questions" but thanks to this dude we get valuable info for free! Thank you man!
Thank you for explaining Schedule C in such an easy way and also by giving clear examples
very helpful. step-by-step guide, easy to understand, and straight to the point.. thank you so much!!
I just found your videos and will be using them to guide me because the company I work for files taxes but it’s not just taxes but your videos will be my lifesaver thank you so much ❤
Thank you! Clear and concise instructions are explained.
thank you very much, you are a good teacher. easy to understand you.
Clear and to the point! thanks - this was helpful.
Thanks for watching!
Thank you so much! This was super helpful!
Excellent explanation, so helpful. Thank you
Thank you so much. I like the way you explain it, even though was a little fast. I am trying to learn how to do taxes.and I am learning from you. Thank you.
I’m happy it was helpful!
This was so helpful, thank you so much!
Your pro bro, thanks for your incredible help God bless you!
very detailed, thank you so much for the information!
You’re welcome!
Great video..Answered everything I needed and more!
Happy to help!
Super helpful. Thank you for the clear explanation.
Glad it was helpful!
Great video I listen to another video before this and you are so much clearer and quicker. One question I use my home for my office and for meetings with clients, my utilities here in the house how would I expense those under number 25 and part two on my 1040?
Beautifully explained 👍
Thank you!
amazing video, thank you for sharing
this is so perfect, thank you!!
I'm so happy it helped!
Thank you for this information
Glad I found this
Best video i found!
Love it bro thanks
Very helpful, thank you. How can I take this information to schedule 1040? Is there any follow-up video?
Life saver ❤ Thanks for sharing
Absolutely!
Thanks
So useful
Very good video
Thank you so much
Just started your video, but is that a scouting Arrow of Light I see behind you?
Good explanation
Thank you!
Dude...THAAAAAAAAAAAAAAANK YOU!!!!!
You’re welcome!
Amazing video !!! Thank you so much for this wonderful content. The only problem I have now is: how to report 1099-nec on the 1040
This should help! www.hrblock.com/tax-center/irs/forms/form-1099-nec/#:~:text=You'll%20use%20the%20amount,report%20it%20on%20Schedule%20C.
hey thank so much for the info have been very helpful. However, I have a question is the if you received w2 and 1099 and the same year you start working a sole proprietor you add all this on the schedule C INCOME 1, or you just add the 1099 + all what you make as sole proprietor or just a sole proprietor? I'm no clear about that.
Would be good to mention De Minimis Safe Harbor stuff!
What do you do about double reporting 1099k how would you handle that? Second question if you have multiple 1099k would you enter them all separately or combined.Thanks in advance
We're looking at filing married jointly with a small business for my husband but I won a bit on slots. Where should we show that & also write off any losses too? Should we fill out a schedule A too or is there a place on the schedule C to place gambling wins & losses?
What software do you recommend to do taxes on your own preferably for free? I need to file for the past 2 years, 21 & 22. I did about 20k and I have dependents. Can’t afford to pay anyone right now to do it for me but I’m hoping I get a little back at least in child tax credits.
Thank you!
returns and allowances is for ebay as well due to customer return that we have to refund ?
Where does all the software stuff go again? Google Workspace, CRM and Website hosting etc? ... I still get confused on that...
In business address you said you can use home address is this only if you use home address as your business address? Or am I allowed to use home address even if I registered under a seperate business address
just started llc this year haven't use it do i still need schedule c?
My schedule C with H&R Block did not allow me to add non-1099 income without posting it as other income. Is that OK? Should I do something different next year?
It is listed under other income line 6 on schedule C. It will be nearly the same amount every year.
this was legit. thx
Would I file more than one of these if I do multiple businesses as a sole proprietor? Kinda lost 😅
Meaning you use schedule C to fill up schedule 1 in order to fill up form 1040, right?
Can I file 1040 online? What forms should LLC file at all?
Thank you!
Hi was wondering if you can explain Line #26, i had an employee and i paid him 12500.00 do i claim all of 12500.00?
Also idk if commissions and fees if I can add my Etsy fees and shipping costs? 😅
Can you PLEASE tell me where i add my husband's income? We file jointly ( 1040 ) but i file with a schedule C for doordash. Do i combine our income on the gross income line or the other income line? Thank you so much
What if the business had no revenue in the year? I opened my business in May 2023 and didn't have any revenue.
where does the refund come in at
How do I figure out the return?
Multiple questions
Can I just do an average cost of goods because I make jewelry and some crochet items now too. But I even half to go back and do last years taxes too because we couldn’t understand it very well. I did have an extension and paid them a guesstimate of what I’d owe maybe idk it all confuses me.
But also is the inventory part what it cost me to make it or what I’d be selling it at
Admittedly, our business doesn't deal with the production of goods for sale so take this with a grain of salt.
The cost of goods should reflect the total cost of your goods, you can chose to account for it either "at cost" (what it cost you) or "market value" (what you would sell it for), you just have to be consistent and indicate on the form which method you've chosen.
I’m on ssi and support my son I just want to claim him period how can I do that Thk u I got the 1040es
Great video, but which line on the 1040 is schedule C reported? Haven't heard any answer to this, even after several vids, docs etc. Some of us still hand file returns. 8, 10, 12 nowhere?
That will go on line 13
Where do i submit it?
You kind of glossed over 32a and 32b as a consultant there may not be any real investment , just selling your experience and paying business incidentals out of pocket as you go. #1 How is that handled? #2 I seem to get 4X larger expense by simply using an 8829 v. the quick $5/ sq ft method. Thank you.
Do you wait till the end of the 1st year to fill this form out? And is this the form for side jobs?
You will file this form alongside IRS Form 1040 when you regularly file taxes (due April 15th annually unless the 15th falls on a weekend or holiday).
Yes if you receive a 1099 through Uber or some other contracting service you're considered a small business owner and will file Schedule C if you operate as a sole proprietor
Question what do we put for section A for only selling used items on ebay??? like clothing
I believe 454110 can work, but please double check with the schedule C instructions to make sure this fits your business
Can I use a bank statement as a receipt to claim a deduction on a particular item when I was not given a receipt for that business expense transaction?
Take this with a grain of salt, but I would think that yes that could work
Just a few questions.
1. Is a tax year from April 18th 2021-April 18th 2022?
2. Do we leave the rest of the 1040 blank and just fill out C?
1. The tax year for most people is 1 Jan - 31 Dec. if you’re running something other than a sole proprietorship (i.e. partnership) you can make your fiscal year start whenever you would like, but it will still be a full 365 days
2. You will fill out the normal 1040, schedule C is in addition to it
Hey I have a good question. First thank you for he video. My question is when do I file this? Do I fill this out and send it by mail after filing my taxes on turbo tax or what
You’ll file the schedule C whenever your file your 1040. So if you’re using TurboTax you’d have to pay for the self employed version
Thank you!
This was great but you skipped over the profit or loss part and I had to go to a different video for that info. Great content, thank you!
I had been a self-employed contractor, for my own company, for many years since I got out from school. I filed my own tax. So, when I brought new computer & related equipment, I listed these expenses, if any, in the Expense section in Schedule C.
I also paid the annual registration fee, for my company, to the state (which I listed on line 23 in Schedule C)...
However, due to Covid pandemic, in late 2020, my longtime client decided not to use my company service in order to streamline their expenses. So, I switched to work for another company as a regular salary person for the first time instead.
Since I am a salary person now (for myself, not my company), and I had not work as a contractor, as a side-job, in 2021 at all. Based on this, I have a few questions:
1/ Should I file Schedule C, since I have no income as a contractor for my company in 2021?
2/ Even though I have not generated revenue for my company in 2021, but I still have to pay registration fee, web page hosting fee, etc... for my company. I also brought a laptop and a tablet early in 2021, which under normal circumstances, can be accounted for under depreciation section in Schedule C. But since I had not been a paid private contractor in 2021, which of the above items should not be listed in my Schedule C form?
Thanks in advance.
For this I would refer to a CPA for the best answer, but for me, I would think you can still file a schedule C and claim 2021 as a loss since you didn’t have any income
@@APennyPinchersGuide Thank you for the advise.
It is so demoralizing, state-of-mind, to file for a loss. Thank goodness I have a regular job for backup.
@@sorcererstone3303 this should have made for a fatter refund no?
how did you file c alone or with a w2 ? and did you ge a refund with self employed
Where do you put startup costs?
Like a lot of things (unfortunately), it depends. This page should clarify how to deduct startup costs appropriately www.irs.gov/publications/p535#en_US_2021_publink1000208611
Hey I have a question in section 2 under utilities so I am a home based hairstylist and I use things like a portable hair dryer and a ridgid wet/dry vaccine for my washing station both of those things take up electricity (utilities) so how would I calculate how many kWh I used in a year to service my business or do I count the whole bill as a whole from when I started working out of my business to December of 2022?
That’s an excellent question! I’m meeting with a CPA this week and that was one of the questions I needed answered. Follow up with me in a week and I’ll have that answer for you
no you cannot deduct your entire bill, just the portion used for business. You may want to get a submeter installed
@@TheUnofficialMaker the subpanel installation will be fully deductible
Where do you add the Self Employment tax from form SE to the 1040?
The self employment taxes will not be reflected on the 1040 because that exclusively deals with federal income tax (as opposed to social security and medicare)
For 25 gas and electric is it entered for the month or for the year?
It would be for your entire tax year (whether you use a calendar year or your own fiscal year)
What happens if you forgot to include the ending inventory if you have Sales as business?
As for the specific penalty/fine I'm not sure, but I'm sure the IRS has something for it
@@APennyPinchersGuide i just read by not entering an Ending Inventory shows that ur whole business is a loss
If I already filed my 2022 individual taxes and would like to add a form (Schedule C in this case) how would I go about that?
You’ll need to file form 1040-X to amend your tax return
This video is awesome to this point. So far I have 4 hours of research trying to find out how to attach 1040c info to form 1040. Or how to fill out a 1040 when my only income is from 1099-NEC. Maybe a step by step for this? I'm probably going to have to pay someone to answer what seems to me like a simple question. This will be the first time in 40 years I won't be doing my own taxes.
OK after 5 hours I figured it out what line to enter 1040c info. Here's the steps. 1099-NEC to 1040c to 1040 schedule 1 to 1040 and then you can do form 8962. 1040 schedule 1 shows where to enter this income.
I didn’t file my taxes for my business in 2020 OR 2021 as I barely made an funds past $400 I think the one year I made like almost $600 and didn’t is that bad? Like I’m tryna file now for 2022 I made around $3k! But in 2020-2021 I bought equipment, would I be able to add that stuff to my form 4562 for the depreciation for 2022 tax filing?
Or is it too late to do that and I just need to only do 2022 specifically?
What if after inputting in all expenses, I do not have a receipt for it?
Maybe reach out to the retailer the purchase was made through and see if you can get a copy of the receipt?
Hi! Thank you for sharing but I would to ask is the 1040 schedule c is different from regular 1040 for W2?
I need to file both so I need 2 different forms and file them together? I did food deliveries Jan to April 2022 only for side gig, then I was employed ( restaurant) from Feb. To present
I normally use turbotax for my job W2. De luxe category. Is the 1040 schedule c, i have a choose self employed category on turbotax? Please help me. Thanks I am confuse.
yes
So schedule C is a sub form that you have to fill out in addition to the regular 1040 is you had self employment income
I think this is not completely correct. Correct me if I’m wrong. But after thorough study, you gonna have to use schedule C to fill up eschedule 1 in order to fill up form 1040. Am I correct or wrong?
If I sell on poshmark and also have a part time job do I use this form?
It will depend on how your business is structured that you use to sell on postmark. If it’s just yourself (sole proprietorship) then yes you’ll use the Schedule C
Just found this video because I am seeking how to file schedule C due to my first year in business but was not aware that a 1040 is needed also.
Yes, you will need to also file an individual tax return
@@APennyPinchersGuide thanks for the response - I am using HR block software since I have been using them since I was in high school but when I use their software and complete schedule C it does not give me the option to fill out a 1040, after business deductions it says I have no wages. I was not trying to use an accountant but at this point I am not sure, I truly DO NOT WANT ANY ISSUES WITH THE IRS 😁😁😁
@@mikearango2318 depending on how large your business is and what type of deductions you will want, getting a CPA may be your best bet. Although at this point getting one for this tax season will be difficult, I'd say check out FreeTaxUSA since they offer business tax filings for free as well as your individual return
@@APennyPinchersGuide thank you
@@mikearango2318 hire cpa, its deductible and keep you out of trouble.
I didn't see this mentioned:
Schedule c - Is this activity Qualified trade or business (Y/N)
What do I enter for this?
I don't see that mentioned on Schedule C, what line number are you referring to?
Do you help with schedule c for a small business
I'm sorry I'm not a CPA, but if you have a specific question I may be able to help
should my accountant charge me if I fill out my own schedule c and hand it to him?
That will be dependent on your accountant’s individual policy
When I’m don’t filling it out where do I send it 😂
If you look up the 1040 General Instruction towards the end it lists where specifically to mail your return dependent on where you live
T H A N K Y O U
Security guard fall under this schedule c form
You should say … US or Canada !!!!!!
Does Canada use the same naming convention for tax forms?
i can say the video is brilliant but i got my schedule c and stub done by my man deelscafe 👍
sams thanks for this comment it helped me in getting my new car after i saw his page on i.g
How can I contact him. I need a huge return
@@hourivirago6013 gram
Line J?? Who is dumb enough to tell them yes I’m required to fill out a 1099 but I’m not doing it??
Which form does a drug dealer fill out? 😁😁 jkn
You’d be surprised 😮