Filing a Schedule C Tax Form for 2011, 2012

You may be wondering whether or not you need to file a Schedule C tax form or a Schedule C-EZ form with your tax return. If you are not sure if you need to file either tax form, then the following information should help determine what form is right for you if any.

Are you the sole owner of a business or operate as an independent contractor? If you are, and you have earned more than $600.00 in profit you will need to file a Schedule C tax form with your tax return. If you meet the specifications to file a Schedule C form, it will be attached to your 1040 form.

The Schedule C-EZ form is considered the short tax form.

If you meet the following requirements you may be able to file the Schedule C-EZ tax form.

• Business expenses are $5,000 or less
• Do not have inventory at any time of the year
• Never hire an employee
• Do not depreciate any business property
• Do not claim expenses for business use of your home
• Use the cash method for accounting

Also, if you are claiming a loss for the year you must file a Schedule C tax form, not the EZ form. Filing a Schedule C business tax form does not have to be complicated. With the proper information and tax form instructions for the Schedule C, you will be able to file your business tax return with no worries.

Be sure to take into account your business tax deductions that you can write off on your income tax return.

The following tax deductions are the most beneficial to a business:

• Depreciation of a computer or a cellular phone
• Dues to professional societies, chambers of commerce and unions
• Education that is employment related
• Home office expenses
• Tools and Supplies used for work
• Travel, transportation, and gift expenses related to work
• Work clothes, uniforms and their upkeep costs

Visit TurboTax Online to file your Schedule C tax form along with your tax return. TurboTax will ask you all the necessary questions for complete accuracy in filing your income taxes for your business.