SCH C Due Diligence Documents

All applicable SCH C Due Diligence Documents must be completed prior to entering ANY information on SCH C. 

Schedule C Worksheet: Complete for all returns with SCH C attached.

Depreciation Worksheet: Complete for all SCH C returns with depreciation included on the return.

8829 Business Use of Home Expense Worksheet: Complete for all SCH C returns using Form 8829.

SCH C (Form 1040), Profit or Loss from Business (Sole Proprietorship)

• Taxpayers use SCH C to report income or loss from a business they operated as a sole proprietor.

• Taxpayers who file Form SCH C are considered self-employed.

• Self-employment in excess of $400 MUST be reported to the IRS.

• Self-employment income is income received from the sale of products or services by an
  individual.
  Self-employed individuals may be any of the following,
  Independent contractors: Provide contract work to other individuals and receive a 1099- NEC, 1099-MISC, or 1099-K for their services.
  Sole proprietors: Operate their own business providing a service or selling goods. Keep gross receipts and records of their income and expenses.

• Taxpayers may use the same SCH C for multiple forms, as long as the work is the same type of work.

• Some taxpayers may have a BOI reporting requirement, see What is the BOI Reporting Requirement?, for more information.

For more information regarding SCH C, reference SCH C (Form 1040) Profit or Loss from Business (Sole Proprietorship).