Affiliate Finances

Tax Tip 3 - Do You Qualify For Form 1040 Schedule C-EZ?

01.09.06

If you need to file Schedule C come tax time, have you looked at the requirments to file Schedule C-EZ instead?

There are a couple rules you’ll need to meet, which are documented in the flow chart on the top of Schedule C-EZ. Probably the biggest two requirements would be that your expenses are less than $5,000 and your not deducting business use of your home.

The biggest advantage of Schedule C-EZ (besides being shorter) is that it only requires you to write in your total revenue and total expenses. You won’t need to classify them into different categories; you can simply lump them all together.

That alone will save you a ton of time when you’re filling out the paperwork.

But as I mentioned again, make sure you meet the requirments on Schedule C-EZ before you begin it instead of Schedule C.




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