![]() If you are both a sole proprietor and a statutory employee, you’ll need to fill in two Schedule Cs-one for each role. They also use Schedule C, which is why they get a reference here. Statutory employees are independent contractors who are treated as employees, meaning their “employers” withhold taxes. This is your gross income-don’t deduct refunds or returns. Translation: Total income, not including sales tax, goes here. See instructions for Line 1 and check the box if this income was reported to you on Form W-2 and the “statutory employee” box on that form was checked. Lines 3, 5 and 7 can be taken as instructions, but for the rest, here’s a quick translation. This is where Schedule C starts to look less straightforward, and more like a tax form. Social Security Number (SSN): You must enter your SSN, even if you use an EIN for business purposes. If you answer “Yes” to I, you must also answer “Yes” to J, and file a 1099. I-J: If you paid subcontractors or individuals $600 or more for work in your business, you’ll need to file Form 1099. H: Check the box if this is your first year in business. ![]() If you did, check “Yes.” If you’re unsure, consult an expert. G: “Material participation” generally means if you worked in your business. ![]() If you’re not sure which you’re using, check out our guide to the differences between cash and accrual accounting. Usually, small business owners use cash accounting. Potentially confusing boxes include:Ī-B: In Box A, enter a brief one-line description about the type of business you’re doing, and the relevant code (found in the IRS instructions).į: Record your accounting method. Most of this is pretty self-explanatory, requiring basic information like your name and business address. The top part of Schedule C isn’t labeled numerically, but instead has ten separate lettered boxes: A through J.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |