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How to Fill Out Schedule C for Business Taxes

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If, after watching the video, you decide you want help filing we are currently accepting new clients. Check out our website, www.cpaonfire.com, or email us directly [email protected] Step by step instructions for filling out Schedule C on tax return. Schedule C is used to report business income or loss. By watching this video you can learn to either fill the form out yourself, or how to better organize your documents for your CPA to fill out. For more tax and accounting information visit our website at www.cpaonfire.com/
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Text Comments (87)
Roderick Lee (3 months ago)
how does c tie in with se
Taisha Gibson (4 months ago)
Thank you You explain perfectly
Gil Balwing (5 months ago)
Where would you expense material say for a service company on the schedule c. I thought you can put it in cogs as it is like cos (cost of sales). Thanks in advance
Gina B (5 months ago)
Thanks for posting this. Quick question could I put my monthly GRT payments on line 23?
Queenn Callier (5 months ago)
Thank you! much better understanding of what goes where when completing my Schedule C
Francoise (6 months ago)
thank you so much this video is very helpful
Dorjee Tso (6 months ago)
quick question. your example T-shirt business. where I should put Shipp fee of T-shirt ?
Dorjee Tso (6 months ago)
you ready answered below. Thanks very helpful video.
M John 3:16 (6 months ago)
By far the best video I've seen. Thank you so very much. 💗
R S (6 months ago)
very helpful
where do you put gasoline?
OKCMomma (7 months ago)
Line 23, taxes and licenses: any regulations on the sales taxes?
Wow! Thank You So Much 😊
Eric Falloutguy (8 months ago)
I’m trying to get a mortgage so how Can I show my income so the see I actually made money on the c?
Carmen Huertas (8 months ago)
If you paid yourself wages on payroll and you are a single member Llc that files an SCorp, you wouldn't put it on line 26: wages. You wouldn't even file a sch C. You would have a k-1 to report as part of your 1040. The amount on the k-1 has already factored the expense of your own wages or any other employee wages for that matter. The wages you put on line 26 is if you had people on payroll, meaning social security and Medicare was withheld. It's the only thing I heard that was incorrect.
Keith Warcholak (10 months ago)
i can not figure this out. So frustrating.
TheMediaGuy (10 months ago)
What if I pay via PayPal? Do I still have to pay check "yes" on 1099?
Sophis ticaded (1 year ago)
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Bob Wilson (1 year ago)
How do you use a business income - LOSS on the 1040, Line item #12 to reduce your tax on income?
inderida2000 (1 year ago)
Great Video!!! Question if you provide services as a mobile business, but do office work and stuff at home, do you enter the portion of your rent/mortgage as a percentage of space in the "Rent or lease" expenses section?
Kenneth Kay (1 year ago)
Nicholas Nietzsche (1 year ago)
Very helpful. Thank you.
Dolphin Warrior (1 year ago)
Thank you for taking the time to make this amazing video. Very helpful!
Good explanation. I am an AARP Tax Aide and wind up doing a few sched C returns.
Zullala (1 year ago)
Thank you so much! This is my first year doing an at home business. I'm seeing a tax guy tomorrow but I wanted to be organized before I went. I was able to print this for out and get all of my receipts in order. I'm really excited to do my taxes because it's the final step in acknowledging my business as a real business.
missige (1 year ago)
Very well delivered and informational. Thank you sooooo much!
M.Marie Middleton (1 year ago)
I need to reorganize.
HECTOR USMC (1 year ago)
thanks for the detailed video that helps a lot
Rachelle Bryant (1 year ago)
Hello dear, what tax software do you use? Thank you for his video
mighty seed (1 year ago)
I noticed you said that if I paid myself it can go to wages on this form?
Jordan J (1 year ago)
I am an independent contractor since I work as a secret shopper. My question is I pay for some of the meals as a secret shopper. For example I am asked to secret shop a eatery but I am required to purchase the meal for $10. I am reimbursed and give $5.00 adds dollars for a total of $15.00. How do I claim the meal separately from what I actually made or do I claim the entire $15.00 as income? Or do I claim $10.00 expense and $5.0 income and where on schedule would I input this? I have over 1K of shops like this. Thanks.
Clareth Castillo (1 year ago)
quick question can cell phones expenses be consider as other expenses ? or dose it fall on utilities
Louie Aleman (3 months ago)
Clareth Castillo only if u use it 100% for business, but if u use it for personal use than u only claim 50%
gramarmy (1 year ago)
Josh, If I am a single owner LLC, do I have to fill out this AND regular personal taxes? Or does this cover me for my personal income too? Someone told me that since I am the sole owner of the LLC, that my personal taxes and business taxes are all the same, and I dont have to file seperately.
Jeff Johnson (1 year ago)
An owner of a single-member LLC can choose to file Schedule C, which is part of an individual tax return. Therefore, you can file a Form 1040 tax return to report your business income and other income that you received.
Jerry Burrowes (2 years ago)
This was a great video!
Orlando Tax (2 years ago)
This is really a big help.
Thanks for this tutorial
Coach Shaunie (2 years ago)
Thank you so much. This was incredibly helpful.
Elke Fontillo (2 years ago)
what an awesome step by step- it helped me so much! thank you.
Eddie Garcia (2 years ago)
I have 2 questions hopefully you can clarify. 1. On line 35 on Schedule C "Inventory at beginning of year..." If you are selling t-shirts, but had zero inventory at the begging of year and you started a business towards the end of year(Q4) and purchased t-shirts to resell lets say, $2,000 I am assuming the amount would be 0 (zero)? 2. Does Cost of Good Sold include sales taxes?
jasonc_tutorials (2 years ago)
thanks for this awesome video!
ProjectLifecoach (2 years ago)
Oh shoot.. I was deducting standard mileage rate + repairs! oops! good thing you told me. But that actually makes sense since repairs will affect personal and business use. Thanks for the lesson!
debra covack (2 years ago)
very good ..thank you.
z planetx (2 years ago)
Economy Pluming and Heating vs U.S. Corporations 1972 “Revenue Laws relate to taxpayers and not to non-taxpayers,. the latter are without their scope. No procedures are prescribed for non-taxpayers and no attempt is made to annul any of their Rights or Remedies in due course of law. With them [non-taxpayers] Congress does not assume to deal and they are neither of the subject nor of the object of federal revenue laws.” Long v. Rasmussen, 281 F. 236 (1922) "The revenue laws are a code or system in regulation of tax assessment and collection. They relate to taxpayers, and not to nontaxpayers. The latter are without their scope. No procedure is prescribed for nontaxpayers, and no attempt is made to annul any of their rights and remedies in due course of law. With them Congress does not assume to deal, and they are neither of the subject nor of the object of the revenue laws..."
amber turner (2 years ago)
my return was accepted but my preparer didn't fill out the top portion of the schedule c. only expenses were reported. how will this affect my return
Feona Lee Jones (2 years ago)
Im wondering if I can file a Schedule C with any of the free services out there like Turbo Tax ?
Anna Skywords (2 years ago)
Thanks so much
Anna Skywords (2 years ago)
In the example video you showed here your expences amount was about half the amount of your income. Is it common to have your expenses amount be over your income amount ?
Josh Bauerle (2 years ago)
+Anna Skywords Hi Anna, it's not necessarily common, but it is certainly possible to show a loss.  If you do show a loss it will just reduce your overall taxable income.
Thank you very much!!! :)
Miguel Sebastian (2 years ago)
Thanks, very helpful!
TOP APP (2 years ago)
great vid. eBay sellers can also use a free app called EP Calc that will automatically calculate their expenses, ebay & paypal fees to put on their schedule C form
Carol LaBarbera (3 years ago)
Form 1099 has been sent  to IRS but my accountant said I dont have to file this year because I have hardly anything to deduct but I have received  distributions checks for the 2014 year so how do I pay taxes on that if Im not  filing
Feona Lee Jones (3 years ago)
So "Costs of goods sold" in Part I is only applicable for businesses that sell tangible products....rite ?
Accounting Universe (5 months ago)
Yes, if you sell inventory as a retailer or if you are a manufacturer, then you have Cost of Goods Sold. The calculation would be different though. For example, a retailer would have beginning inventory + purchases -ending inventory equals cost of goods sold. In cost accounting, they teach cost of goods sold for manufacturing which is more complex because it involves raw materials inventory, work in process (while product is being manufactured) and finished goods inventory.
Darrin Smith (3 years ago)
+Feona Lee Jones If you produce the product then you would factor the cost of the ingredients it took you to make it. If you are acting like the middle man and purchase a product only to sell it for more than you purchased it then I would think there are no cost of goods sold. How that helps you out.
Jessica Kaminski (3 years ago)
Thank you !!
Splooshii (3 years ago)
Thank you, this saved my ass.
specialCraftsandmore (3 years ago)
BRENDA (3 years ago)
For my business where do I enter the monthly taxes that I pay my state every month on schedule C
Anderson Nguyen (3 years ago)
it is very good tutorial. Thanks AN
carlos cortes (1 year ago)
Smf Tax Service (3 years ago)
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bazking (3 years ago)
Thank you...much appreciated!
Kadian Williams (3 years ago)
Thank you for this video.. very helpful
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SteelJokers (4 years ago)
Excellent video!
Skylightatdusk (4 years ago)
Do you have to submit the documents to support your figures?
Blake Lynch (4 years ago)
Not unless the IRS send you a notice that they are performing an audit
Lily Ziran Zhang (4 years ago)
Thank you so much for your super helpful vedio :) make me feel it much more clear
Crystal Mclaren (4 years ago)
Thank you so much for the video. It was a tremendous help in preparing for our meeting with our CPA.
Rossina Sanchez (2 years ago)
Chris Simpleton (4 years ago)
For a service business (online;1099-k), do the refunds go on line 2?
jrgleason2003 (4 years ago)
Quick question, if 99% of my sales came from credit cards, do I report the gross sale before my processor took their fees out or do I report the amount reported on the 1099MISC given to me by my processor?
Josh Bauerle (4 years ago)
+jrgleason2003 OK so is it coming from your credit card processor or from someone who hired you?
jrgleason2003 (4 years ago)
+Josh Bauerle That actually haven't given me anything yet (this is my first business so bear with me). I hired an accountant who gave me a schedule C to fill out and on the income section it asks for  "Gross Receipts or Sales (Form 1099 MISC, Box 7). Regardless, what you say makes perfect sense so I will try that once I receive the appropriate documents.
Josh Bauerle (4 years ago)
Hi, was it a 1099K they gave you?  Thats usually the form issued for credit card sales.  Most of the 1099's I've seen have been the gross amount before fees, not the net amount after fees.  If yours is showing the net amount I would just report that.  If it is showing the gross amount, report that and then report the fees as an "other expense" item. Does that help?
L Jay (4 years ago)
Great video, part 2 and 3 of schedule c can be so confusing... thanks for the vid
Patty G (4 years ago)
trying to figure out where I would put shipping cost, if I sell items on amazon. Amazon sends you a 1099k totaling what the customer paid. I then buy the shipping to send the item so I actually do not get the amount of money that the customer sent for item.... most of time I pay more to ship than cost the customer, but I would like to not claim the amount that I spend on shipping as income to me. I m guessing 27a
Edward O (5 months ago)
Josh Bauerle I rent wedding chairs and I have registered my business. Do I have to use form schedule c? I opened business last year and registered it last year but I will start renting this year. Do I still use schedule c form this year?
Patty G (4 years ago)
Thank you, your vid helped and I got that one right. 
Josh Bauerle (4 years ago)
Hi Patty, yes it would go on line 27a for other expenses.  You would list it out on Part V and I would just call it shipping costs. Good luck!  Feel free to email if I can answer any other questions [email protected]
Daniel Ramirez (4 years ago)
Thank you very much! An excellent explanation regarding schedule C. I really appreciate this video since its straight forward, well thought out and informative.
Brian Warner (4 years ago)
yes it does, thanks!!
Josh Bauerle (4 years ago)
Glad you enjoyed it Brian, thanks for the comment! Yes, you have to choose either the standard mileage deduction OR the actual expenses. So for 2012 the standard rate was 55.5 cents per mile and you could either take that or add up all your car expenses (gas, repairs and maintenance, insurance, etc.) and take that number. Most people use the rate because it is easier. Does this answer your question?
Brian Warner (4 years ago)
hello Josh great video. I have a question about what you said about car and truck expense. I may have misunderstood, but did you say to either take the mileage or take repair costs but NOT both?? Or can you add them both together?? Thanks!!

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