Schedule C-EZ (For Net Profit from Business

Net Profit From Business

SCHEDULE C-EZ
(Form 1040)

Partnerships, joint ventures, etc., generally must file Form 1065 or 1065-B.
▶ Attach to Form 1040, 1040NR, or 1041. ▶ See instructions on page 2.

Attachment
Sequence No. 09A
Social security number (SSN)

General Information
▶

You May Use
Schedule C-EZ
Instead of
Schedule C
Only If You:

A

2011

(Sole Proprietorship)

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Department of the Treasury
Internal Revenue Service (99)
Name of proprietor

Part I

OMB No. 1545-0074

• Had business expenses of $5,000 or
less.
• Use the cash method of accounting.
• Did not have an inventory at any time
during the year.
• Did not have a net loss from your
business.
• Had only one business as either a sole
proprietor, qualified joint venture, or
statutory employee.
• Did not receive any credit card or
similar payments that included
amounts that are not includible in your
income (see instructions for line 1a).

• Had no employees during the year.

▶

• Are not required to file Form 4562,
Depreciation and Amortization, for
this business. See the instructions for
Schedule C, line 13, to find out if you
must file.

And You:

• Do not deduct expenses for business
use of your home.
• Do not have prior year unallowed
passive activity losses from this
business.

B Enter business code (see page 2)

Principal business or profession, including product or service

▶
D Enter your EIN (see page 2)

C Business name. If no separate business name, leave blank.
E

Business address (including suite or room no.). Address not required if same as on page 1 of your tax return.
City, town or post office, state, and ZIP code

Did you make any payments in 2011 that would require you to file Form(s) 1099? (see the Schedule C
instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F

G If “Yes,” did you or will you file all required Forms 1099? .

Part II

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1a
1b

1c
d Total of lines 1a, 1b, and 1c. If any adjustments to line 1a, you must use Schedule C (see instructions)
2
Total expenses (see page 2). If more than $5,000, you must use Schedule C . . . . . . .
3
Net profit. Subtract line 2 from line 1d. If less than zero, you must use Schedule C. Enter on both
Form 1040, line 12, and Schedule SE, line 2, or on Form 1040NR, line 13 and Schedule SE,
line 2 (see instructions). (If you entered an amount on line 1c, do not report the amount from
line 1c on Schedule SE, line 2.) Estates and trusts, enter on Form 1041, line 3 . . . . . . .

1d
2

3

Information on Your Vehicle. Complete this part only if you are claiming car or truck expenses on line 2.

4

When did you place your vehicle in service for business purposes? (month, day, year)

5

Of the total number of miles you drove your vehicle during 2011, enter the number of miles you used your vehicle for:
a

No
No

Figure Your Net Profit

1a Merchant card and third party payments. For 2011, enter -0- . . . . .
b Gross receipts or sales not entered on line 1a (see instructions) . .
c Income reported to you on Form W-2 if the “Statutory Employee” box
on that form was checked. Caution. See Schedule C instructions
before completing this line . . . . . . . . . . . . . .

Part III

Yes
Yes

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Business

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b Commuting (see page 2)

c

Other

6

Was your vehicle available for personal use during off-duty hours? .

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Yes

No

7

Do you (or your spouse) have another vehicle available for personal use? .

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Yes

No

8a

Do you have evidence to support your deduction?

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Yes

No

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Yes

No

b If “Yes,” is the evidence written? .

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For Paperwork Reduction Act Notice, see your tax return instructions.

Cat. No. 14374D

Schedule C-EZ (Form 1040) 2011

Page 2

Schedule C-EZ (Form 1040) 2011

Instructions

Line 1a—1d
For 2011, the IRS has deferred the requirement to report the
amount of merchant card and third party network payments
received. Therefore, enter zero on line 1a and report all gross
receipts on line 1b, including income reported to you on
Form 1099-K. Also include on line 1b amounts you received in your
trade or business that were properly shown on Form 1099-MISC. If
the total amounts that were reported in box 7 of Forms 1099-MISC
are more than the total you are reporting on line 1b, attach a
statement explaining the difference. You must show all items of
taxable income actually or constructively received during the year
(in cash, property, or services). Income is constructively received
when it is credited to your account or set aside for you to use. Do
not offset this amount by any losses.
You may not enter amounts on both lines 1b and 1c of Schedule
C-EZ; if both lines apply, you may not file Schedule C-EZ and must
report each amount on a separate Schedule C.

!
▲

Before you begin, see General Instructions in the 2011
Instructions for Schedule C. Also, the IRS has created a
CAUTION
page on IRS.gov for information about Schedule C-EZ, at
www.irs.gov/schedulecez. Information about any future
developments affecting Schedule C-EZ (such as legislation enacted
after we released it) will be posted on that page.

You can use Schedule C-EZ instead of Schedule C if you
operated a business or practiced a profession as a sole
proprietorship or qualified joint venture, or you were a statutory
employee and you have met all the requirements listed in Schedule
C-EZ, Part I.
For more information on electing to be taxed as a qualified joint
venture (including the possible social security benefits of this
election), see Husband-Wife Qualified Joint Venture in the
instructions for Schedule C. You can also go to IRS.gov, enter
“qualified joint venture” in the search box, and select “Election for
Husband and Wife Unincorporated Businesses.”

Line 2
Enter the total amount of all deductible business expenses you
actually paid during the year. Examples of these expenses include
advertising, car and truck expenses, commissions and fees,
insurance, interest, legal and professional services, office expenses,
rent or lease expenses, repairs and maintenance, supplies, taxes,
travel, the allowable percentage of business meals and
entertainment, and utilities (including telephone). For details, see the
instructions for Schedule C, Parts II and V. You can use the optional
worksheet below to record your expenses. Enter on lines b through
f the type and amount of expenses not included on line a.
If you claim car or truck expenses, be sure to complete Schedule
C-EZ, Part III.

Line A
Describe the business or professional activity that provided your
principal source of income reported on lines 1a-1d. Give the general
field or activity and the type of product or service.

Line B
Enter the six-digit code that identifies your principal business or
professional activity. See the instructions for Schedule C for the list
of codes.

Line D
Enter on line D the employer identification number (EIN) that was issued to
you and in your name as a sole proprietor. If you are filing Form 1041, enter
the EIN issued to the estate or trust. Do not enter your SSN. Do not enter
another taxpayer’s EIN (for example, from any Forms 1099-MISC that you
received). If you are the sole owner of a limited liability company (LLC), do
not enter on line D the EIN issued to the LLC, if any. If you do not have an
EIN, leave line D blank.

Line 3

You need an EIN only if you have a qualified retirement plan or
are required to file an employment, excise, alcohol, tobacco, or
firearms tax return, are a payer of gambling winnings, or are filing
Form 1041 for an estate or trust. If you need an EIN, see the
Instructions for Form SS-4.

Line 5b

Nonresident aliens using Form 1040NR should also enter the total
on Schedule SE, line 2, if you are covered under the U.S. social
security system due to an international social security agreement
currently in effect. See the Schedule SE instructions for information
on international social security agreements.
Generally, commuting is travel between your home and a work
location. If you converted your vehicle during the year from personal
to business use (or vice versa), enter your commuting miles only for
the period you drove your vehicle for business. For information on
certain travel that is considered a business expense rather than
commuting, see the Instructions for Form 2106.

Line E
Enter your business address. Show a street address instead of a
box number. Include the suite or room number, if any.

Line F
See the instructions for line I in the instructions for Schedule C to
help determine if you are required to file any Forms 1099.

Optional Worksheet for Line 2 (keep a copy for your records)
a

Deductible meals and entertainment (see the instructions for Schedule C, line 24b) .

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a

b

b

c

c

d

d

e

e

f

f

g Total. Add lines a through f. Enter here and on line 2

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Schedule C-EZ (Form 1040) 2011