Steps to when to file a Schedule C tax form

Written By Gary Spirer Published March 28th, 2010

This tax season is quickly approaching. For those people who run a business, or perhaps are new to running a business, this is a confusing time of year. How do you know if you need to file a schedule C?

Step 1 File a Schedule C

Well, if you are a business owner, it is possible that you will need to file a schedule C. If you are the sole owner of any business or if you operate as an independent contractor (which may mean that people pay you without taxes being taken out or that you receive 1099s) you’re going to need to file a schedule C. A schedule C is a tax form used by these types of businesses and business owners.

Step 2 Know the Schedule C tax form

The schedule C is the Profit or Loss from Business, or it is also called the Net Profit From Business.

Step 3 know the requirements for filing a Schedule C

Here are the requirements as it is possible that your business does not meet them for this particular year. First, there is the business income requirement. If you’ve made $400 or more in business income over/above your expenses than you will need to file a Schedule C or C-EZ and a Schedule SE to pay self-employment tax. This is the case even if your income would otherwise not be enough to require you to file a tax return. If you run more than one business or if you have a sole proprietorship, you simply add those incomes together (net) to determine whether or not you need to file based on the $400 rule.

It’s that simple. Remember, you can not avoid taxation. Please visit for more great business advice.


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