IRS Form Schedule C EZ & Information
NET PROFIT FROM BUSINESS - Sole Proprietorship
The Schedule C-EZ Form
For the sole-proprietors, you can use this simpler form only if you showed a profit.
The form cuts out a lot of the details asked for on the Schedule C form.
It wants you to report your total business receipts and expenses. The stipulation here is that you must be able to report no more than $5,000 in your business expenses.
You have to have a cash method of accounting.
You have to show a net profit. You also can not have held business inventory during the year.
You also can not have any employees, and you can not claim any deduction for a home office or business use of your home.
You must have had only one business as either a sole proprietor, qualified joint venture, or a statutory employee.
You can not have had any employees during the tax year.
You must not be required to fill out a form 4562. (Schedule C line 13).
You can not have had prior year un-allowed passive activity loss from this business.
You will have to fill out a separate section if you take expenses for a vehicle.