Notice: JavaScript is required for this content.The Eastern Conference Final will feature the Florida Panthers versus the Carolina Hurricanes and will begin on Thursday in Raleigh. Schedule C-EZ may no longer exist, but filing your business taxes doesn’t have to be a challenge! Contact us today, and we’ll set up a tax planning strategy. Our team has decades of combined experience tracking small business income and expenses, implementing accounting information systems, and filing taxes. We’d be happy to sit down with you to get your bookkeeping in order. Rather than trying to figure out the more complicated Schedule C, let us help! And we recognize the challenges that sole proprietors face, especially since Schedule C-EZ is not an option. Final ThoughtsĪt Shared Economy Tax, we live and breathe accounting and bookkeeping for small business owners. Save time and money by ensuring your record and bookkeeping department is organized. Taking the time to organize your books ahead of time can provide a huge payoff down the road. No one wants to spend hours chasing down invoices, receipts, and other records. If you don’t have an organized accounting system, you will struggle at tax time. Maintaining organized books will make it much easier to calculate the totals for your Schedule C when the time comes. Due to this change, small business owners should focus on better organization and record keeping. As of 2019, all self-employed individuals must file the full Schedule C. Unfortunately, the IRS removed Schedule C-EZ as a filing option. Now that the C-EZ has been phased out, business owners must submit the classic Schedule C form to declare the business earnings and expenses. The form was shorter and easier to complete for the average business owner without an accountant. The C-EZ form saved small businesses time and, subsequently, money. What Options Do Business Owners Have Now? The IRS opted to remove Schedule C-EZ as a filing option for self-employed individuals. More often than not, self-employed individuals didn’t meet one of the above requirements, negating the simplified filing option. You satisfy the requirements of other less common situations that relate to depreciation and losses from prior years.Īs this list illustrates, business owners needed to check a lot of boxes to use Schedule C-EZ.You don’t claim the home office deduction.You don’t receive certain credit card payments.Your business or profession doesn’t require inventory.Your total business expenses don’t exceed $5,000.In particular, self-employed individuals needed to meet all of the qualifications below: Earn income as an independent contractorĪfter clearing this threshold, business owners had to meet a series of other requirements to qualify.Operate a business as a sole proprietorship (including a single-member LLC).According to the IRS, you qualify as self-employed if you either: This meant confirming that as a business owner you were, in fact, self-employed. Who Should Use a Schedule C-EZ Form?īefore the IRS phased the form, business owners had to confirm that they qualified for Schedule C-EZ filing. Naturally, the latter option required far less time to complete. Conversely, the C-EZ version only requires basic information about the business and a simplified calculation of business profit. The standard Schedule C requires owners to report all of their income, expenses, and calculate net income. And, when business owners save time, they save money. More precisely, this simplified version required far less time to complete. Rather than use the longer Schedule C, business owners could reduce their administrative burden with a Schedule C-EZ. This article will help businesses owners that used to file with Schedule C-EZ and will cover the following topics:īefore 2019, Schedule C-EZ provided self-employed individuals a simplified tax filing option for reporting business results. Now that Schedule C-EZ no longer applies, businesses may need to update their reporting procedures. All businesses that previously filed with Schedule C-EZ must use the Schedule C, Profit or Loss from Business forms. However, beginning in the 2019 tax year, the IRS eliminated this option. For example, in 2018, qualifying businesses could report income on Schedule C-EZ, which is a simplified version of a Schedule C form. The number of different IRS forms can seem extremely confusing. As a small business owner, it’s easy to become overwhelmed with tax-filing requirements.
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