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:
    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 of income as long as the work is the same type of work.

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